Grindlays Bank Limited v. The Income Tax Officer, H Ward Companies, District-Iv, Calcutta And Ors

fast effets ATAHT ATM, HHA wT WT _. (Grindlays Bank Limited—-Incometax Officer Calcutta and Others)-(15 Hag, 1980)_ (raratfaaia cto Ua searfaar BT ATTo Yas WSF) :araet afafran, 1961 (1961 sr 43) arer 153(1)(iii) eaeeea (1) aoe(ii) aat [agisa afzara1950_aqete2261]— frat —aea sara grtl ATTHTafeera et ga: faite eat & fag fata feat oematta are fata ae ag aaa azar fe faatea ofedtarBier afsa at mat at ate ge care faatca a faq att &atta & sama afeare at waa % fae asa caratsware tat F—arer 153 & eqedtaee (1) % ave (ii) Fagar ag vate aftatarsra st areata aaatag & fara:ature rarareara & waar at earate grat faatca wat wat F,aa: ga: fratzar & fad 31 ara, 1977 ara aida ofeetar:gree ataa vat &| afaaa, 1950—ageae 226—gea-taqratag at fez:wittaza vt arfarieat —fraica araagat wt caer antag.HETeHHTT AZRYS 226 H qealay FeA-"TMNAIA Bl FATT(aefrrattcg) afiarfcat aq stat & site ca sate seaaaa & Ae Ga: freartea HA wr ada BA at altar FI attaret + ot gages feasea Ft faafaa cH dead wert@, frater ad 1972-73 & fag act ara at faarxoit orga at b ‘Frater arial ® ara araat afsardt a araatafar a‘aren 142 (1) ¥ atta aclerelf& Gear afeat atx cearag a TTA®t ater ett ge aH gaat ard atatardt a dfaarat FaqeaR 226 RahaaaT GeaaraagTH se gaarsfas Maat‘frat | sea eqravars & ow Peart CHa erate A area KATATEwet Prat. anftaredt & sea eararera H anita aget ata faarawae arate arer faq we fag Sagat F aaHT afaarel ¥31 ard, 1977 at om fraten are fear) aera Sea ATTBtage aus we caftrats ate F aIY are 142 & ate (1) 12 F ws, seit 1978 aretfe ara are Pavia TAT arer ater TTorfrs faster aaa afrafoed ax far aefreq Var Het TATgus aq X araxaferaret at aan Frater aera far afaze featga fata & eafaa diac attardf 3 ga eataraaanaaa frat ate adr wt % fae fare gorse afasteat Ft alala aifet FW EU, afafaatica—frareeta frater ag 1972-73 {1 ATTHTafafaaa at are 153 (1) (a) (iii) % arate Tz fet Frater ag> geaeyarte Frater va faster ad at aarfta a arat Fgear vat feat ar anat| fratcr ay & aaa alt at arte31 ard, 1975 2, aanfa afraref & fee facta 17 aTa, 1975 BYfratzo ander fae ayfae safe at aarfer & 14 far Ga HRAfeat| gat aréte at aaa 17 ara, 1975 ay fara cH eaTaTetT& faateor arrarat wea F arcane aferard al Ua aa TH FAT-fer emda age frat ate 25 ata, 1975 al fee fadtaar & afearaweadtu aga safaa feat var ari fee frerrt aT fateterfagra THe FaTaTHT ge Taw 31 area, 1976 are fara grefrat qatar ag ers & fe Prater ardarfeat 17 ara, 1975 &31 amet, 1976 at aafe a ayers eararay F areal F Aare ATwat et ot tar Sa aa BT AT ears Sat Herayt g fie sa fatswae eararetar are aay facia H eater fee mar at at ae Feefacta at fagarer wea ara faoia Fo saw aren fear qa aetargt alt HART datagt FeaeT ait faacaal wy cara F tad eT 28 0 seaera earatera faa afar [1981] 1 gA0 fo qo Ba 31 amedt, 1976 & Tt ye fora st arehe@ F Taal AAAT. STATaifar1 aerearg, atraref grer args at Te ortrer H fate F caeal afeadt Hea & fara avs tar arafea area at feat war ar fefaateo Saat 31 ard, 1977 Bi fear araata-gqaar F Tarat fagara % fase dt ca tH area feat qar art faara THT eaTaTettar& fatal ar aaaca Ha eq araat afeard A 3ATs, 1977 atun fratem ata fearoferrqeaer frater erzargat17 ars,1975 8 31 ara, 1977 aH eaataT H FAVA Heat gre FVwats & ater aftaa calt afe are 153% eqsdiacy (1) ¥ve(ii) at art ata feat aie fat ag soaes fat aaté feare 53 & saree ofedtarara at arora awa A ag wate frayater fret eararaay % arear at eae are faster ear tel , HI-afaa at areal at Gor BT a az eqez st arar & fe ada 31 ara,1977 arat fate aren ofearar gras ats ae e| aaea aera& ga faaarF arg vet sal & fe fratea wea F fae cfealar atwate are ate at ate saw ara fratey a fea art ar THqeaara afrare Fa TTT st Tat aT ate ag fe ohoraeaET Teeeararaa wa sat frater Hea B fag fae st aay aM HAT Ffa aera vat aT 1 (Tz 6) GRINDLA YS BANK LIMITED THE INCOME TAX OFFICER, 'H' WARD COMPANIES, DISTRICT-IV, CALCUTTA AND ORS. January 15, 1980 [N. L. UNTWALIA AND R. s. PATHAK, JJ.] Bar of linlitation under section 153(1)(a)(iii) of the lnco111e Tax Act, 1961···-When the as~ssment proceeding remained during the entire per!od by successiv·e orders of the Court, the fresh assessn1ent order cannot be faulted 011 grounds of limitation. Powers of High Court to make the order a ftehll a,~sessnient und,::r certiorari ;urisdiction under Art. 226 of the Constitution. The appellant, a banking compooy incorporated in the United Kingdom, carries on banking business in India and is assessed under the Income Ta-x Art, 1961. The appellant filed a return of it~ income for the assessment year 1972-73. During the assessment proceedings the1 Income Tax Officer issued a notice under •cction 142 (I) of the Income Ta,x Act requiring the appellant to produce certain account books and documents. The appellant applied against the notice to thei High Court of Calcutta under Article 226 'of tho Constitution. The High Court construing the notice in specifically limited terms. directed the appellant to comply with it. The appellant preferred an appeal in the High Court. Meanwhile, pursuant to the direction by the learned single judge~ the Income Tax Officer made an assessment order on March 31, 1977. Thereafter the appeal was allowed by a Division Bench of the High Court by its judgn1ent dated May 8 and 12, 1978, and the impugned notice under section 142(1) aruf the consequent assessment order were quashed. But while' doing so;· 'the Division Bench also directed the Incon1e Tax Officer to make a fresh··iissessn1ent. 1\ggrieved by that direction, the appellant applied for, and o1:¢ajned special lea\'e to appeal to this Court. ,,,.· Dismissing the appeal, the Court HELD : 1. The Hight Court was competent to make the order dircctiilg a\ fresh assessment since the limitation for making the assessment had not expired and no valuable right to be assessed had thereby accrued to the appellant. [769 D-EJ The facts of the case ma..ke it clear that the assessment proceedings ren1ained pending during the entire period from March 17, 1975 to March 31, 1977 by virtue of successive stay orders of the Court. If regard be had to clause (ii) of Explanation 1 to section 153 which provides that in computing 1he period of limitation for rhe purposes of section 153 the period during which the assessment is st&•yed by an order or injunction of any court shall be excluded, it is abundantly clear that the assessment order dated March 31, 1977 is not barred by limitation. In computing the period for 111aking the assessn1ent, the Income 1·ax Offic~r would be entitled to exclude the entire period from March 17, 1975, on which date there were fourteen: days still left \Vithin the norm:i,l A operation of the rule of limitation. TheJ assessment order wa:! made on the very first day after the period of stay expired; it could not be faulted on the ground of li1nitation. [769 B-D] TheJ assessment order wa:! made on the fee feta FH ataraat yer agate araat afafraa atera 142 (1) % att qaar a) afeaftsr Hear at att wet THaTde@ 31 ata, 1977 avat faster area sa qaat H aaa aAAT-qraa & ofcrrmcawey Hagar! Safa wea H sera FHar Tar aT, Tafasten area at afrafsa arat at arayan et rat ar tsa ferateoraeraatal areqeq frat aretfta ata atc fraieo area art g,curfranet at F HT ara 2.6 F adla Gea raraar HHsera (aa) afrarfear ary sat s1 ara ate IT TaSeq euraTas at aferarfrar Hr sal Hrar & al ag afaara areaat afuahsr a ara é ate gant offs fafas sara agefr afaaret ate & searray wrearel HT AY ATT Hat aTTTAT arafew & aver gafaaren ate ad aaa are fagerer wer % fartad gt AT ATATSt ATT ANTTAT Sea eaTaTaT aay gra afrafisa area & cara gt aay area sfaearfra wrar sat St fers x Igun fuer armafree cea rare eara-frotar aren ate atprdatal BA aT aT HWA F fay aac eararay ar afrHet F oaafaaticat ar got aura fea alate1 Se ear A eT AAT aIardadt & afvefver wer oe ara Hat ga: wafer vet SAT |araife qaadt sare & aaa H seq varataa afaaret area afafeea wyaaig eat Hay ade FY aaarar at F fat At sarara da afafeae ada tifa wea at ales oT aTaTaqart aifaa 21 adtaredt A aqeye 226 F ata Gea eaATATat aifaataa afantfeat a aera ateiafe ae frat araide ay Eq TST aATATT ser FTE aren vat feat wat at at agdal aafter 2 aaa at MY ge ATA H at we 8, ae 7g fH vat fratzy wrtardl afedtar gran afaa Sag tar ara g A aaa attfee frdtera BIge BA at ara ofefeala srer Forat Area F | Aara at ate cara feat rat arfae fe gaatFH aftaref arer aftatfaa afe Sarat & sarar ga afmarcna yt aT att Rat at foraatfeafe vat ava ft dt Pras wa agfaa vara, ga frtera Teter wer SU F faq FT AT aTaHT andy afaaray at at | ae Catamrareya afeatfeat 1% Tsar | gaAAT FHT eATATAA STAT FA: frat-amy ay fae SAT AAT ATT TT StH AT | (FA _ 7) “7 Araf ga: Frater wer & fae arnt afaaret ay farter 2a aTetsom eararae aren fear TIT ae THB F ATT got eaTT HLA Fsear Faraway aT | Fed raTaea Roe aaa Hwy at afa-aifcat ot att Sax Vat Hey H agy aarfts faaw ar ahaa satafrat &1 (Tz 10)| fatzsz fata [1978]1978 114 ato eto ato 379 emt catégs fafats aara araet afaarct(om) ard faren HelAIA, HST ATT TH eT{ Cachar Plywood Limited ¥.Income-tax fafan ante aaqaricat:: 1978 at fafaer ata deat 2009, - 1976% ya aes Ao 884a sayt attaFH HaHTTseqauraraa & arte 8/12 48, 1978 arat frre ax area & faresFANG SATII AHT Tt TE atte |: fatty gataa dat at we ag aie sewat sea earaTeTarta8 att 12 a8, 1978 ara frota & faeg, wet aa sae ara-av afrare atata F araceat Haat faaten wea F far freer feat mar’, fafaea ee, @, frase.2. atart tedaa gars aaa farsa wad tFF frafra1 ag area cH gearedHt TRH Heat BIL art wut atc araae afatray,1961 Sarda seat atorfat wat =| 3. atta & fate ad1972-73 % faa aod are atfarcry qisa at frac arraat ae eter araraee afrartt +arnt afafray at ate 142(1) & aeta atrareat & war afeaiatte aearase Fer wT at ater HLA ET TH Taa ae st ATTaretha afaarFageye 226 F ada va quar & fas saatgay raratag F araed far| sea earataa H cH fagra THe aayeter F sa face aataaa al ed Bre ael fear achearet + artet-fat gaat at fer ort at iT at et ate fafatace aifae frat% gear qaara HW Bu vat atlarel Ht saa aAGTTT ATAat fae fear) adtaels gear eararraarte atget atefaaiaara 4 Uae 31 ara, raTarete 1977 ater at fae wa ae Prater free arem aqaey F fear| Tal,araHt afa-- Tescqrataa St Gvs eatadtsA aay 8 ate 12 4G, 1978 are ria greearr HET wT at ate are 142(1)F aeite areas ater garaifomfaa faster aaa afvafoss ax fer aci faeg Var awana as arate F arrat afrarel Bl aT fraizezy % fawaft fram feat) sa free & eafaa gat adiaret 4 fade sataa> fac ata fat aie ge eararars a alr HUTS fare fatesaraa afar Ft ait4. gat ane UHATa Tet Fe gfe aa Sea aTaTAT FATFrater & far fade sacar at At ar ash aNarest tag atte at& fa ea aaa a fata tac wadt at at aaife faaizn ofedtargar cea a afea ara at ate aaarer fate @ fag att arwe Hema afTatt atarat at sare gar at att Tes FATATGTga sara afrare & attra at afar wee & fore aera aet aT| 5. wae Sa aT aT Tis HUT alae | fH azar afearar aT 2. The character of an assessment proceeding of which the impugned notice a·;id the assessment order formed part, being quasi-judicial, the "certiorari'' jurisdiction of the I-Iigh Court under Article 226 was attracted. Ordinarily, where B the High Court exercises such jurisdiction it merely quashes the offending order, and the consequential legal effect is that but for the offending order the remaining part of the proceeding stands automatically reviewed before the inferior court or tribunal \vith the need for fresh consideration and disposal by a fresh order. Ordinarily the High Court does not substitute its own ord~r for the order quoohed by it. It is, of course, a different case where' the adjudication by the High Court establfahes a comPiete \Vant of jurisdiction in the inferior court or c tribunal to entertain or to take the proceeding a.t all. Jn that event on the quashing of the proceeding by the High Court there is no revival at all. But although in the former kind of case the High Court, after quashing tht offending order, does not substitute its own order it has pD\Ver nonetheless to pass such further orders as the ju!:itice of the case requires. [769 F-H, 770 A] 3. When passing such orders the High Court draws on its inherent power to ma·ke all such orders as a"rc necessary for doing con1plete justice between the parties. The interests of justice require that any undeserved or unfair advant-age gained by a party invoking the jurisdiction of the cou1t, by the mere circumstance that it has initiated a proceeding in the court, must be neutralised. The simple fact of the institution of litigation by itself should not be permitted to confer an advantage on the party responsible for it. [770 A-C] In the present case, the appellant would not have enjoyed the advantage of the bar of limitation if, notwithstanding his immediate grievance against the notice under s. 142(1) of the Income-Tax Act, he had pern1itted the assessment proceeding to go on after registering his protest before the Income-Tax Officer, and allowed an assessment order to be made in the normal course. In an application under s. 146 against the assesSment order, it would have been open to him to F urge that the notice was un_reasonable and invalid and he was prevented by gufficient cause from complying \.vith it and therefore the assessment order should be cancelled. In that event, the fresh assessment made under s. 146 would not be fettered by the bar of limitation. Section 153(3)(i) removes the bar. But the appellant preferred the constitutional jurisdiction of the High Court under Article 226. If no order was 1nade by the High Court directing a fresh ftSSCii-n1ent, he could contend that a fresh assessment proceeding is barred by limita-G tion. That is an advantage which the appellant seeks to derive by the mere circumstamce of his filing a writ petition. It will b'e noted that the defect comp1ained of by the appe1Iant in the notice was a procedural lapse at best and one that could be readily corrected by serving an appropria·!e notice. It v,:as not a defect affecting the fundamental jurisdiction of the Income Tax Officer to make the assessment. The Jiigh Court \Vas plainly right' in making the directioa. which it did. [770 C·G] DircllC•r of Inspection of Inco1ne Tax (Investigation) /\lew Delhi and v. Poora11 Mall and Sons anJ Anr. (1974) 96 !TR 390@ 395; followed. /\lew Delhi and Anr. Cachar PlywoCld Ltd. v. Income Tax OfficPr, 'A' Ward, Karin1ganj Dist. A -Cachar and Anr:, (1978) !14 !TR (Cal.); approved. Rajind~r 1Vath etc. v. The Co1nn1issio11er of Inco1ne Tax, Delhi, [1980]1 SCR 272; distinguished. aga goa earaTay are arafres area afer Hes F oF foal TATerry slat aT aT eToe| 6. faaraettas fate at 1972-73 8 1 area afafrarsar oo{{r SRT 153(1)(%)(iii) & areare oePat Prater ae grace F CESPrater ga faster ag at aan & at at & TT wel Feat aTTHAT AT | fare ae HT Het 31 ATT, 1975 a, Aart etaretf +fee frdtrt 17 ard, 1975 at Prater ate fag ai % fare aafxal aura & 14 fer qt grea fart gdt arte at, aaty17 ara, 1975 et fare omer arte & Prater Haag Hw aTat shear at det ara wR aeafer ate HAT fear ate25 aTa, 1975 at fee fede 3% aftaa wat F thera ota ya-faa feat mar ati fee frdtaa ar freerer fasta waa earareterBT Sas 31 sea, 1976 ary Fria sree fear TAT YT | aE eqEgfe trate argarfzat 17 att, 1975 & 31 are, 1976 atwafa & ata eararaa & atalt & arare Te eat wet ot | tar ferser@ feat qa 2, fasta waa arate 431 amet, 1976 atfee faétert at froera fat ar) ae friearttareif arRT 142(1)F aehet Gara ar aga Hea fae Fe 2a eu sarTas SIU Tatra Pat qa a, 31 a4, 1977 am frater qTBUF faq araee afaard at ce fre ht sat afeafae frataT 22 fareaz, 1976 at sax ary frota staat ae dated Pear‘agi aH fe wa sat ag ate at af ot Prgqina at & farefratey 31 ara, 1977 a G4 et stat arfec fag 31 ard, 1977Fe ot aa aa afer i” zat aed ¥ sa fs MIG ahrareyweFrater sideredatart te amar orga cet frafer aterTT Serra ier Mar maT aT ae geaT: 31 ard, 1977 ate HC THA IT eT se sre a ate cata Bar weary & fe wafaart wae rarer grer aoe facie H aaitaa fea Tay at al aeFee Prétert ar fraerer wea are fof ¥ Tas are far zat dat-Tt AT ae faarar satrr F eqeq ae fraerat at care FH aTgu va 31 HTT, 1976aT qa frie at arte @ Talat aaa“arat atfgeit atdterredt arer TIA, BT HT TS adta F roa:B Tat BT Aiea Ha H faa are Rar arafea ate aa Pearaa at fe Frater Sar 31 ard, 1977 at Prat TT | aiT-eAT% Tata faq ory & fees df cw dH mig feat war ary fagGaa arate & fala er aaetem at El marae afrardy + 31 ara, 1977 at UH Frater area feat) afeorraeaet Fratergraatfeat 17 ata, 19758 31 ard, 1977 aH rataagy SAATaia grat argo wafer & cert afeaa eet tafe ater 153 Cyeqsdrazoy (1) % que (ii) Ht ae ara feat FTE, frat ag STaeTfeat mat % fe ate 153 = gataare afeatarareat Bt STAT HA% ag safer fram dhera Prat arate ¥ srteat AT sorter arefetaeo eat ter x avatar a oh, at gt wT a 7g eI a stat @fe arta 31 ard, 1977 arat frate aaa ofearar are atstetadi (21 Prater act & fre sate a damar sta F ATAarea 17 Hrd, 1975 3 ag arta fraat ofedtar ¥ faa *arava yada & tac aa at 14 fer arat % AT a, argu ataat aqafaa wea & fae eware starFrater ata ta safer ayania & orarg sere far at et frat TAT aT; FE qfearat F ATATTat age wal st THAT | HITT ata & ga faded Hale saagt & fe Frater wey % fare fee ay aafe ware atte ataie sae gre Prater a fee art BT TH Teaats afaart ga 3T-aaa wat at ate ag fe ofeoraeaer eT AAT UH AaTfate Hs & fae fade VA ara aa BLA & fare aera Tet aT | 7, aren et 7e F fe aT SST eaTATeAT H TA TAT Frater aux at fade BR arat aaa sea at ate ate ft at aal t fRfrdtaa H Rian war ger agay aTaat afahray at are 142(1)& ada qaar ay afvaties STAT AT ait wat TH aT 31 AT,1977 arat faateor aida va gaat H arTT aaTTaT F afcarta-eqey Haare F afeaa TEA H Aer fHAT AAT AT, SA Frater HTeaat afmafoer wear yt aracam ef war aT 1 gat Prater erased FTaan Farah aralna arta ale Frater area aT g, eaTreaeTAAR rey HABs 226 BaaA Ta eqaragy HY ATT (AT-fared) afaarfeat ary sett J | aTATLT TTT IT Tel GT raTaT-aa tet afaariear Ft TAT HATZ at ag afaaret aaa ay afvafosa & wear & att gaat ifefas. fates sara ag @ fx afa-grey aaa B aarar Hrdarel BT AT ATT TAL sqraraa at afernera ama gafearee ate ae arta are Paqarer Hea & ferg ea a Pickles v. Fa/sham, 9 Tax Cases, 261, 288; Anisminic Ltd. v. The Foreign Co1npe1Uation Co1n~ni~.tion & Anr. [1969] 1 All E.L.R. 208; Bath and West B Countries Property Trust Ltd. v. Thomas (Inspector of Taxes) [1978] All. E.R. 305; distinguished. CIVIL APPELLATE JURISDICTION : Civil Appeal No. 2009 of 1978. Appeal by Special Leave from the Judgment and Order dated 8/12th C May, 1978 of the Calcutta High Court in Appeal from Original Order No. 884/76. Devi Pal. P. K. Pal, J. B. Dadachanji and K. J. John for the Appelfant. S. T. Desai, B. B. Ahuja and Miss A. Subhashini for the Respon-4lents 1-2. The Judgment of the·Court was delivered by PATHAK, J : This appeal by special leave is directed against the judgment of the High Court at ca:cutta dated May 8 and 12, 1978 in ~o far as it direc'.s the Income-tax Officer to make a fresh assessment i"n respect of the appellant. The appellant is a banking company incorporated in the United Kingdom with its registered office at London. It carries on banking business in India, and is assessed under the Income-tax Act, 1961. The appellant filed a return of its income for the assessment year 1972-73. During the assessme1>; proceeding, the Income-tax Officer issued a 11otice und·~r s. 142(1) cl the Income-tax Act requiring the "appellant to produce certain account books and documents. The appellant applied against the notice to the High Court at Calcutta under Articles 226 of the Constitution. A learned Single Jud~ of the High Court did not accept the wide construction which the appellant -1;ought to put upon the impugned notice, and construing it in specific 'limited terms he directed the appellant to comply with it. The appellant preferred an appeal in the High Court. Meanwhile, pursuant to the >direction by the learned Single Judge, the Income-tax Officer made an a:oi;ei;sment order on March 31, 1977. Thereafter, the appeal was :allowed by a Division Bench of the High Court by its judgment dated May 8 and 12, 1978, and the impugned notice under s. 142(1) and the consequent assessment order were quashed. But while doing so, the-Division Bench also directed the Income-tax Officer to make a fresh. assessment. Aggrieved by that direction, the appellant applied for,. and obtained, special leave to appeal, to this COurt. The sole question before us is whether the High Court erred in directing a fresh assessment. The appellant contends that the High Court was In error in making the direction because the assessment had already become barred by limitation and thereby a valuable right not to he assessed had accrued to the appellant, and the High Court was not competent to deprive the appellant of that accrued right. It is necessary first to examine whether the bar of limitation had_ come into play at any time before the High Court passed the impugned order. AT Hat s| AMAA Soa ATTA aay gra afwaftsa aseHears TT maa arta ofaearfar aah wat go1 frvaa a ae wwfara araar ¢ fred sea carer carafe ara alg at sedansHC AT TEN Hert H fae qae earavaa ar afsaHry ¥ ore afi.aifear ar ga aaa fag glare) sa ear A see eararag araaad & afyafer wet at arrar ait gat: safer vet altargiaife qaadt cart & aaa H see eqratag afsardt aa afir-afted HUT F eg caT ATA area Hl azarae aal & fax sft saRqa va afafes area ofa wet at afte fT ame F cory ®AZATT Hifas Fi UA sea HW aay earatay VY ada Hes atSH Taare & stat qa cara His &% fare sary et aedt aeatafeaaft at aera aTge aaHR feat Hag ater at ondt2 fieeararaa at afearhcat at agra At are fat cerere aren sary7a fret aaifga at aqfaa ara ar at sa ofefeafe F gota watfara fe sat eararaa F ardarat arera at freraeo star aferead Gaeta F afeaa Het F arse qey A vas fw ga.erat Gare BY HIIAT gary Bl ge ast at oat arfee1 Tegaaradar, afe H att arnt ah gem afafran g 1 attaref at ater at 142(1) ofeatar & & afta quar asta er arrar & fae setSAH THA STAT F NI FT at say, araHr afermrd ¥ ager arrayarate awa & qearq faater wrfardt aqtext at gonaa agit Hit aaa agen FT frateoy aiea fee aA at saad aGat i fraien ataHF faeg are146 F ada angen FV caala TT AIT at at ye dt fa ag afer agfnge ate afzaara 2ait cater aH a sas Tag HAH fae ga frarfea far war arar gafag frater aaaxe feararat affect sacar#TU 46 & aale sar fraico Tatars asta gra faafaa wal Shrcarer 153(3)(i) asta wt gerat &1 fey atteref § arqede 226 >adta sea rararaa at aifaarfan afeaniftarat agiaar at 81 afeaa frateor ar aria et gq THs aTaTAy grat HE ade vet featwar at at ag Vat acter F aHAT aT TT ee GAT art aNar J 8,ag ug fa at fate wraarat cheater arer ats @1 ag tar art@ AT atraredt ava fre festa area wre at ara ofefeafe gre SSA BRAT F 1 eA ara BY A eae feat sar afar fe gaat Faitaret ater ofearfea afe sarar-a-sarar ua chrarcns yet aT ATdet ft faaat ofe ea a cH agfat qaar Tale Hs BY TTaad at 1 ag tat afe aét ft fast vata frattr sea % fararent afanred ar atareya atfeatftar ce osaT1 BATS aT Asea eararagy at ag fata Sar aT gaa fear at ararey ate Te Staararene fava fate (xeawar) ag fecal ate cm ara TATATARA WS AT ate GH ae! H ge eATATAT BT AT Garg g| TAAag wel Tat s—, COTMAT APIS 226 B areitr oat afsaal BT FATTmr ge feet ot aaa & eal H ofat agate % eget aara BU | ats fret area waa H eararaaA ay arent grat& fix aaa afeard % aren 132 (5) ¥ ada nee ofBa ana arahaa oars. FH cata aaat wel feat Tafeaft Hemaraa e gat aa el et Btgat alan fe aggaat afyafoed ax 2 ate werart aT as TIT FF 1 AS ABa aaa age wt stare fe sat aver sega fae 7gaeat & arare at at fread: frarar aT awa ar ot feararat afaard & fratat azar ag fret at arfiatat BzqHaT Ss Fai aera TaBIT BT ABhaT ATAAT ST AAT |ATE 226 H area Pat area at afaafrss wer sr afe-are Raa vet am F sad adl fear ot ana wate oaaa at afweafer aa ar caer feat ware afer wateag aaifrare & ate at feat wat gf atesa aaea F salsifsarel al sa ara at facets ar face aa % fare Hgqarea ad dt and: feeg ga area at ofefeafaat Faaa ae areaFo awags fH gat ofa aT eaamma at faqert at afsarfzar & dat sa sifsaret at sefagert ar fade Tana & agar et wa sifsarat arae, afsafear orcad, Ha Cai ofefeafeat are, Ta fa 1 (1974) 96 aro to mz» 390, 395-[1975] 1 exo fio To 741. aati cara % fagiat at sfaoret wear, fee at war z,va feafa F araraa ee area At aT BT aHAT gs TATsifsara erage freee anaes fe ae ara at fax acfat & faqere ate dfsa carart BY aT ATA TEA BTgfaqaa waa Tala HL HATA Saat aa ag stn fH set—aerraTerervara & fratal fart ater at oraa BY Ra vet ATA feat TT vat area= al Ha saat J fae ga Taha HTTar aren oifta wea ana afracr agar sifsarel a) vatata at face roe} fu agufa sae ares & goraT & graye at vet Sat arfer 1” The assessment year under consideration is the year 1972-73. By· virtue of s.153(1) (a) (iii) of the Income-tax Act, no assessment order-in respect of that assessment year could be made after two years from the end of that assessment year. The end of the assessment year i<l March 31, 1975. However, the appellant filed the writ petition on March 17, 1975, fourteen days before the end of the period for making_ the assessment order. On the same date. March 17, 1975, the learned Single Judge granted an interim injunction restraining the lncomt>-tax Officer from proceeding with the assessment, and on March 25, 1975 the injunction was made operative for the pendency of the writ peti-tion. The writ petition was disposed of by the learned single judge by his judgment dated August 31, 1976. It is apparent that the assess-ment proceedings remained s'.ayed throughout the period from March 17, 1975 to August 31, 1976 by vi.rtue of the orders of the court. As. has been mentioned, the learned Single Judge disposed of the writ petition on August 31, 1976. In his judgment, besides directing the appellant to comply with the notice under s. 142(1) as construed by him, he also included a direction to the Income-tax Officer to complete the assessment by March 31, 1977. Oi1 Seprember 22, 1976, he amended his judgment inasmuch as it now required that "the assess--men! for the relevant year must be completed on the 31st of March,. 1977 but must not be completed before 31st March 1977." In other words, while the Income-tax Ofticer could continue with the assess-ment proceedings he was restrained by the Court from making 1he assessment order before, and i'n fact could mak2 it only on, March 31, 1977. Now it is important to note that when the amendment was: made by the learned Single Judge in his judgment, it was an amend-ment made by him to a judgment disposing of the writ petition and having regard especially to the nature and the terms of the amend-- ment, it must be deemed '.o have taken effect as from August 31, 1976, the date of the original judgment. In the appeal filed thereafter by the appeJant, no interim order was made suspending the operation of the direction that the assessment order be made on. March 31, 1977 only. A stay order was made against the enforcement of the notice of demand alone. Adhering to the directions of the learned Single Judge, the Income-tax Officer made an assessment order o'n March 31, 1977. In the result, the assessment proceeding remained pending during the entire period from March 17, 1975 to March 31, 1977 by successive orders of the Court. If regard be had to clause (ii) of Explanation 1 to s. 153, which provides that in computing the period of limitation for the purposes of s. 153, the period during which the assessment is stayed by an order or injunction of any court shall be excluded, it is abundantly clear that the assessment order dared March 31, 1977 is not barred by limitation. In computing the period for making the assessment, the Income-tax Officer would be entitled to exclude the entire period from March 17, 1975, on which date t11ern were fourteen days still left wirhin the normal operation of the rule of limitation. The assessment order was made on the very first day after the _period of stay expired; it could not be faulted on the ~ound of limitation. There is, therefore, no force in the submission of the appellant that the limitation for making the assessment had expired and a valuable right not to be assessed had thereby accrued to it, and that consequently the High Court was not competent to make tJ-.e order direc"ing a fresh assessment. SAMA IL RAHATee eyaaagra Be wrgge fantsaaa agKe ated (‘x’) ats, fact sedate Fare ate CFag! F faare fear wat at att sea earavay A arrat afafaan atSIT 153 & sraeat ot faare HUA F Teatg ag agfaa AAT aTfa fre fected er fagerer wxa aaa aaHt afaard at fraierBargon arara away & fae fate ard fear sia di searata F fata& afedtar ara ata gi at | 8. ea emma Faq ad ce baw fafeere a ae aterrae atte aaa orane arget feet? (fafaa ater deat1972 @1864-69) & feat wat at,faaarfafazaa13 aaa,1979 at ee emraray at oH arate are fear war at fram eAHF UH aaer , gare cava arace feat wat = sa wraa F eqrar-wyaan afafram at rer 153(3) (ii)# saat azfrare Prat ot ate ag afeafag feat ar fe ga stare FH fazer”ereq ta fader & of fader wrard at aaa % frvert & far ara-aye st att ara ar fafaeaa wrest aaa faa wea F far aaaBore afer ettgart gre aga TT ea Aas aqare fH qarfratzor net ar fae wea