ORDER UNDER S. 144B–Breach of s. 144B.
Held :
Sec. 144B was only a procedural provision and a breach of that provision was not a fundamental or jurisdictional infirmity which could render the assessment void or a nullity.–Joseph Kuruvila v. CIT (1989) 179 ITR 139 (Ker) followed.
Conclusion :
Sec. 144B being procedural the breach thereof does not render the assessment void.
Application :
Not to current assessment years.
Income Tax Act 1961 s.144B
Reference–JURISDICTION OF HIGH COURT–Tribunal held in favour of capitalisation of interest on capital borrowed.
Held :
Power is vested in High Court to allow deduction thereof under s. 57(iii) instead.
Application :
Also to current assessment years.
Citation :
Income Tax Act 1961 s.256
JUDGMENT
T.L. Viswanatha Iyer, J.
1. The question referred to us, namely, whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessment order was not a nullity and consequently in holding that the matter has to be restored to the Income-tax Officer with a direction to pass a fresh order according to law after complying with the legal requirements of Section 144B is covered by the decision of this court in Joseph Kuruvila v. CIT [1989] 179 1TR 139. There this court held that Section 144B is only a procedural provision and a breach of that provision is not a fundamental or jurisdictional infirmity which would render the assessment void or a nullity. Precisely the same point is raised in this reference and the matter is concluded against the assessee by the aforesaid decision. We, therefore, answer the question referred in the affirmative, that is, in favour of the Revenue and against the assessee. There will be no order as to costs.
2. Communicate a copy of this judgment under the signature of the Registrar and seal of this court to the Income-tax Appellate Tribunal, Cochin Bench.