INCOME TAX ACT, 1961

Section 226 Section 68B

Recovery - Auction sale of immovable property - Limitation of 3 years - Relevant 'order giving rise to a demand' in terms of rule 68B to Sch. II--Acknowledgement or intimation under section 143(1) or order passed under section 143(3)

Question arose for consideration was whether acknowledgement or intimation under section 143(1) could be treated of 'order giving rise tp a demand' in terms of rule 69B to Sch. II to compute limitation of 3 years for completion of auction and sale of immovable property as against order passed under section 143(3). Held: The phrase 'order giving rise to a demand' in rule 68B should be construed as final assessment order, determining the tax liability of assessee with interest, fine, penalty or any other sum. With the commencement of proceedings under section 143(2), intimation under section 143(1)(a) which, in the absence of proceedings under section 143(2) read with section 143(3), would have taken shape of regular assessment, remained an intimation only of self-assessment and merged into regular assessment and, therefore, once proceedings for regular assessment under section 143(3) was commenced, there could not be any recourse to bring into existence any order under section 143(1)(a) and, period of limitation of 3 years had to be counted accordingly.

REFERRED :

FAVOUR : Against the assessee.

A.Y. :

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