KARUNA RANI JAIN Vs. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) THE matter here pertains to the form and content of a valid order of assessment in terms of Sections 143 and 144 of the Income- tax Act, 1961 (hereinafter referred to as "the Act" ). Under these provisions of law, the Income-tax Officer is required to assess the income on which tax is payable and also to determine the tax payable thereon. Is an order of assessment to be taken to be invalid, merely on the ground that the determination of tax was not incorporated in the order, whereby the assessable income was assessed, but on a separate sheet of paper ? Herein, lies the controversy raised.

(2.) IN the present case, both the assessable income as also the tax payable thereon were determined on the same day, but the tax was indicated on a separate sheet of paper accompanying the assessment order. The notice of demand, in pursuance of this order, was also issued on the same day. The Tribunal, upheld the validity of the assessment and that is what has led to the following question being referred for the opinion of this court:

(3.) THE answer to the question posed has clearly to be given in the negative, in favour of the Revenue and against the assessee. A somewhat similar question arose before the High Court of Karnataka in CIT v. R. Giridhar [1984] 145 1tr 246, where the determination of the tax was done on the same day as the assessment of the assessable income, but on a separate sheet of paper accompanying the assessment of the total income of the assessee. It was held that the impugned order was, in substance and effect, clearly in accordance with the provisions of the Income-tax Act.