ORDER OF ASSESSMENT–Non-compliance with provisions of section 144B.
Ratio :
Where there is non-compliance with provisions of secton 144B the assessment would not be void but only irregular.
Facts :
The assessing officer made an addition of more than Rs. 1 lakh of income without submitting a draft assessment order as required by section 144B. The Commissioner of Income-Tax under section 263 held that such order of assessment was erroneous and prejudicial to the revenue and sought to revise it. The assessee contended that the assessment order was void as mandatory provisions of section 144B were not complied with.
Held :
The assessment order was not void, but irregular and the Commissioner could validly revise such order under section 263.
Application :
Not to current assessment years.
Income Tax Act 1961 s.144B
Revision under s. 263–JURISDICTION OF CIT–Assessment firstly made under section 147.
Ratio:
Commissioner has jurisdiction to revise the assessment order made under section 147 which is not reassessment but is a first assessment made due to failure in filling the return under section 139.
Held:
The assessment made by the Income Tax Officer was first assessment and not a reassessment of an earlier assessment made by the Income Tax Officer. The Commissioner could, therefore, validly revise such assessment made by the Income Tax Officer under section 147 for the first time.
Application:
Also to current assessment years.
Income Tax Act 1961 s.147
Income Tax Act 1961 s.263
