COMMISSIONER OF INCOME-TAX Vs. MANJULA SOOD

JUDGEMENT

(1.) WE propose to decide these connected cases bearing Nos. 48, 49 of 1990, 5 to 11, 14, 15, 17, 18, 19, 21 of 1991, 13, 14 and 15 of 1996 as common questions of law and fact arise in all these matters. The facts have, however, been extracted from I. T. C. No. 49 of 1990.

(2.) IN this petition filed under Section 256 (2) of the Income-tax Act, 1961, in the case of Mrs. Manjula Sood, Ludhiana, for the assessment year 1983-84, the prayer is to direct the Income-tax Appellate Tribunal to refer to this court the question of law as mentioned below, stated to be arising from the Tribunal's order : " Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in holding that the order passed by the Commissioner of Income-tax under Section 263 was barred by limitation ? "

(3.) THE sole but forceful contention of Mr. B. S. Gupta, learned senior advocate, appearing on behalf of the petitioner, is that Sub-section (2) of Section 263 was amended by the Taxation Laws (Amendment) Act, 1984, and the time-limit for passing orders under Section 263 was laid down with effect from October 1, 1984, as two years from the end of the financial year in which the order sought to be revised was passed, instead of two years from the date of the order sought to be revised. Therefore, the time-limit for taking action under Section 263 could be taken as October 1, 1984, or thereafter and it stood extended till the end of two years from the financial year in which the order, sought to be revised, was passed. In the present case, the order under Section 143 (3) was passed on June 27, 1984, and action under Section 263 could very well be taken on October 1, 1984, the date on which the method of computation of the limitation period was amended as since then not even four months had passed from the date of the order under Section 143 (3 ). The limitation date for taking action under Section 263, thus, became March 31, 1987, by virtue of the amendment of Sub-section (2) of Section 263 as the order under Section 143 (5) in this case was passed during the financial year ending March 31, 1985.