LexR. DALMIA versus COMMISSIONER OF INCOME TAX
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A
R. DALMIA
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{_
v.
COMMISSIONER OF INCOME TAX
FEBRUARY 5, 1999
B
(S.P. BHARUCHA AND N. SANTOSH HEGDE, JJ.]
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Income Tax Act 1961, S. 147 r/w Ss. 144-B, S. 153
Explanation l(iv)-Whether S. 144-B applies to assessments and reas-
c
sessments under s. 147 and therefore the extended period of limitation of 180
days provided under Explanation 1 (iv) to s. 153 available to such assessments
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and reassessments-Held, yes.
The appellant assessees challenged the assessments and reassess-
ments of their returns made by the Revenue under s. 147 of the Income
D Tax, Act 1961 ('Act') before the Income Tax Appellate Tribunal
('Tribunal'). The Tribunal held the assessments and reassessments to be
barred by limitation as in its view s. 144-8 applied only to assessments
made under s. 143(3) and not to" those under s. 147. In answering a
reference made to it at the instance of both the assessees and the Revenue,
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the Delhi High Court took the view that s. 144-8 of the Act was applicable
to assessments and reassessments made under s. 147. The assessees
appealed to this Court.
Dismissing the appeals, this Court
F
HELD : 1.1. S. 144-8 of the Income Tax Act applied to assessments
and reassessments under Section 147 and therefore, the extended period
of limitation provided by Explanation l(iv) of Section 153 was available
for making such assessments and reassessments. [465-8]
1.2. In making assessments and reassessments under S. 147 the
G procedure laid down in Sections subsequent to S. 139, including that laid
down bys. 144-8, has to be followed. [464-8]
Commissioner of Income Tax v. Sundaram Spinning Mills, 225 ITR
er
214 (Mad); CITv. Simson and Mc. Conechy Ltd., 177 ITR 526 (Mad); CIT
v. Usha Aggarwal, 178 ITR 406 (P&H) and Commissioner of Income Tax v.
H Smt. Radha Devi Poddar, 185 ITR 544 (Cal), approved.
454
R. DALMIAv. C.l.T. (S.P. BHARUCHA,J.]
455
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Kera/a Kaumudi Pvt. Ltd. v. CIT, 181 ITR 30 (Ker) and CIT v. V.D. A
Saraf (HUF), 207 ITR 217 (BOM), impliedly overruled.
CIT v. Sun Engineering Works Pvt. Ltd., 198 ITR 297 and Modi
Industries Ltd. v. CIT, 216 ITR 759, referred to.
CIVIL APPELLATE JURISDICTION : Civil Appeal Nos. 4913-26
B
of 1992.
From the Judgment and Order dated 24.1.92 of the Delhi High Court
in S.C.A. No. 1/92 in l.T.R. Nos. 418-431 of 1984.
H.N. Salve, Shanti Bhushan, Jaideep Gupta, Hari Har Lal, Gauri C
Rasgotra, Suman J. Khaitan for Khaitan & Co. for the Appellants.
V. Gauri Shanker, S. Rajapppa, Bairam Das and B.K. Prasad for the
Respondent.
The Judgment of the Court was delivered by
S.P. BHARUCHA, J. These appeals, by certificate, impugn the cor-
rectness of the judgment of a Division Bench of the High Court at Delhi.
D
The question is whether the additional period of 180 days given by Ex-
planation l(iv) of Section 153 of the Income Tax Act, 1961, is available E
when the assessment or reassessment is made under section 147.
We are concerned with assessments/reassessments made under Sec-
tion 147. In one set of appeals the Assessment Year involved is 1947-48.
The notice under Section 148 was issued on 24th March, 1964. Subsequent
proceedings were stayed by the High Court on 29th May, 1964, the order p
of stay being made on a writ petition filed by the assessee. The writ petition
was dismissed, and the stay vacated, on 17th May, 1974. The draft order
under Section 144B was made on 10th March, 1978 and the final order of
assessment was made on 14th September, 1978. Assuming that the ex-
tended period of limitation of 180 days aforementioned was not available
to the Revenue, the period for making the assessment had expired on 19th G
March, 1978. In the second set of appeals the Assessment Years involved
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are 1947-48 and 1948-49. The notices under Section 148 were issued on
24th March, 1964 and 20th March, 1965. Subsequent proceedings were
stayed by the High Court on 23rd February, 1968 and 21st August 1968,
the orders of stay being made on writ petitions filed by the assessee. The H
456
SUPREME COURT REPORTS
[1999] 1 S.C.R.
A writ petitions were dismissed, and stay vacated, on 27th April, 1978. The
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draft orders under Section 144B were made on 16th May, 1978 and 31st
July, 1978 and the final orders of assessment were made on 6th September,
1978 and 7th April, 1979. Assuming that the extended period of 180 days
aforementioned was not available to the Revenue, the period for making
B the assessments had expired onExcerpt shown. Read the full judgment & AI analysis in Lexace.