RABI PR GOOPTU Vs. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) This is a Reference under Section 66(1) of the Income-tax Act. The assessment year is 1952-53. The assessment was completed on March 25, 1957 ; the notice of demand was issued on March 30, 1957, by registered post and was served on the Assessee on April 1, 1957. Under Section 34(3) of the Indian Income-tax Act an order of assessment for any year shall be made before the expiry of four years from the end of the year in which the income, profits or gains were first assessable. The Tribunal states that pursuant to this Sub-sections (3) of Section 34 the order of assessment should have been made before March 31, 1957, in the present case. The Assessee contention was that the order of assessment had been made on April 1, 1957, that is, on the date when the demand notice along with the assessment order was received by the Assessee. In the premises, it was contended that the assessment made on April 1, 1957, was barred by limitation. The Appellate Tribunal held that the issue of the notice of demand succeeded the making of an order by the Income-tax Officer. The order of assessment, according to the Tribunal, in the instant case, was made on March 25, 1957, and was not, therefore, barred by limitation.

(2.) The following question of law has been referred to us:

(3.) Mr. E. R. Meyer, Learned Counsel for the applicant, has contended before us that the making of an order of assessment under Section 34(3) of the Indian Income-tax Act implies communication thereof and the order is not 'made' till the order is communicated to the Assessee. The date of the order would, therefore, be the date of communication. In this case, the order admittedly should have been 'made' before March 31, 1957, but since it was communicated to the Assessee on April 1, 1957, it was barred by limitation.