COMMISSIONER OF INCOME TAX Vs. USHA AGGARWAL

JUDGEMENT

(1.) THE matter here pertains to the assessment year 1973-74.

(2.) ON December 29, 1973, assessment under Section 143(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), was framed on a total income of Rs. 4,081. Later, the Income-tax Officer learnt that the assessee had received gifts and advances from various persons whose financial position did not warrant these gifts and advances being made to the assessee. A notice under Section 147(b) read with Section 148 of the Act was consequently caused to be served upon the assessee on March 20, 1978. In the enquiry that followed, the Income-tax Officer formed an opinion that the addition to be made exceeded Rs. one lakh and it was, therefore, necessary to refer the draft assessment to the Inspecting Assistant Commissioner under Section 144B of the Act. The draft assessment so framed, i.e., under Section 144B of the Act, was then sent to the assessee on March 17, 1979, for inviting objections. These objections were then forwarded to the Inspecting Assistant Commissioner for his directions under Section 144B. These directions were received by the Income-tax Officer on September 4, 1979, on which date he proceeded to complete the assessment. The Tribunal, accepting the assessee's contention, held the assessment made on September 4, 1979, to be barred by time and it consequently quashed it.

(3.) AS regards the other claim, namely, that the draft assessment be treated as a valid assessment, this has to be noticed only to be rejected. If this were to be taken to be at par with the final assessment, it would be hit by the principle of natural justice, namely, the framing of it behind the back of the assessee. At any rate, as the very description of it shows that it was only a draft assessment, then, by no account can it be said to be on the same footing as the final assessment.