COMMISSIONER OF INCOME TAX Vs. SHAH BROTHERS

JUDGEMENT

(1.) THIS reference under Section 256(1) of the Income-tax Act is at the instance of the Revenue for deciding the following question of law :

(2.) THE relevant assessment year is 1967-68 for which the accounting period ended with the financial year. THE assessee was required to file the return under Section 139(1) of the Act on or before September 30, 1967, but instead of filing the return, the assessee filed an application for extension of time. THEreafter, another application was filed seeking further extension of time for filing the return till November 25, 1967. No order was passed by the Income-tax Officer on any of these applications and the return was also not filed by the assessee till November 25, 1967. THEreafter, the assessee made no further prayer for extension of time beyond November 25, 1967. THE assessee then filed the return on November 29, 1967. THEreafter, the assessee filed a revised return on March 4, 1971, and another revised return on February 22, 1972. Admittedly, the assessee prayed for assessment on the basis of the final revised return filed on February 22, 1972, and the Income-tax Officer completed the assessment on the basis of the revised return on February 13, 1973. After having obtained the assessment by the Income-tax Officer on this basis without any grievance, the assessee contended that the order of assessment was time-barred not being within the period prescribed either by Clause (a) or Clause (b) of Sub-section (1) of Section 153 of the Act. THE Appellate Assistant Commissioner accepted this contention of the assessee and allowed the appeal holding that the assessment completed by the Income-tax Officer on February 13, 1973, was time-barred. THE Tribunal dismissed the Revenue's appeal against the Appellate Assistant Commissioner's order affirming the view that the assessment was time-barred. Aggrieved by this view of the Tribunal, this reference has been made at the instance of the Revenue for answering the above question of law.

(3.) NO costs.