JUDGMENT
A.M. Sapre, J.
1. This is an income-tax reference made Under Section 256(1) of the Income-tax Act, 1961, at the instance of the Commissioner by the Income-tax Appellate Tribunal (ITAT) to answer the following question of law:
“Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the assessment made Under Section 143(3) read with Section 143(2)(b) of the Income-tax Act, 1961, was barred by limitation in view of Section 153(2) when the return was filed in response to notice Under Section 148 served on September 29, 1983 ?”
2. As is clear from the question quoted supra, a short question in substance that arises for consideration in this reference is whether the Tribunal was justified in holding that the assessment made and completed by the Assessing Officer on March 25, 1988, in the assessment year 1982-83 in pursuance of a notice issued Under Section 148 of the Income-tax Act is within limitation or barred by limitation ? The Tribunal by placing reliance on Section 153 of the Act held that it is barred and accordingly decided the case in favour of the assessee, giving rise to this reference at the instance of the Commissioner of Income-tax to this court.
3. Heard Shri R. L. Jain, learned counsel for the Commissioner of Income-tax, Bhopal. None present for the assessee despite service.
4. Having heard learned counsel for the Revenue and having perused the statement of the case and the relevant orders forming part of the case, we are of the opinion that the question referred has to be answered in the affirmative, i.e., in favour of the Revenue and against the assessee.
5. It is not in dispute that the assessment in question was the outcome of the notice issued by the Department to the assessee Under Section 148 of the Income-tax Act. This notice was served upon the assessee on September 29, 1983, as stated in the statement of case pursuant to which the assessee filed the return on March 28, 1985. The Assessing Officer then completed the assessment on March 25, 1988.
6. Section 153(2) of the Act as it then stood at the time of issuance of Section 148 notice and consequent upon its completion of assessment provided limitation of four years from the end of the assessment year in which notice Under Section 148 was served. In this case Section 148 notice was served upon the assessee on September 29,1983. So, the end of the assessment year was March 31, 1984, for the purpose of calculating four years from that date. Four years period as prescribed Under Section 153(2) would thus expired on March 31, 1988. As taken note of supra, the assessment in question was completed on March 25, 1988, i.e., well within four years as per requirement of Section 153(2) which had application to this case at the relevant time. These dates are taken by this court from the statement of case referred by the Tribunal for answer. The assessment was thus made within limitation and the same was in conformity with the requirement of Section 153(2) of the Act.
7. Under these circumstances and in this view of the matter, we are not inclined to subscribe to the view taken by the Tribunal when it held the assessment to be barred. We, however, hold that the assessment in question for the year 1982-83 made pursuant to Section 148 notice was within limitation and it be given effect to.
8. Accordingly and in view of the aforesaid discussion, we answer the question referred to us in the affirmative, i.e., in favour of the Revenue and against the assessee. No costs.