JUDGEMENT
S. P. Bharucha, J. -
(1.)These appeals, by certificate, impugn the correctness of the judgment of a Division Bench of the High Court at Delhi. The question is whether the additional period of 180 days given by Explanation 1 (iv) of Section 153 of the Income Tax Act, 1961, is available when the assessment or reassessment is made under Section 147.
(2.)We are concerned with assessments/reassessments made under Section 147. In one set of appeals the Assessment Year involved is 1947-48. The notice under Section 148 was issued on 24th March, 1964. Subsequent proceedings were stayed by the High Court on 29th May, 1964, the order of stay being made on a writ petition filed by the assessee. The writ petition was dismissed, and the stay vacated, on 17th May, 1974. The draft order under Section 144-B was made on 10th March, 1978 and the final order of assessment was made on 14th September, 1978. Assuming that the extended period of limitation of 180 days aforementioned was not available to the Revenue, the period for making the assessment had expired on 19th March, 1978. In the second set of appeals the Assessment Years involved are 1947-48 and 1948-49. The notices under Section 148 were issued on 24th March, 1964 and 20th March, 1965. Subsequent proceedings were stayed by the High Court on 23rd February, 1968 and 21st August, 1968, the orders of stay being made on writ petitions filed by the assessee. The writ petitions were dismissed, and stay vacated, on 27th April, 1978. The draft orders under Section 144-B were made on 16th May, 1978 and 31st July, 1978 and the final orders of assessment were made on 6th September, 1978 and 7th April, 1979. Assuming that the extended period of 180 days aforementioned was not available to the Revenue, the period for making the assessments had expired on 5th June, 1978 and 7th December, 1978.
(3.)The assessees challenge to these assessments was taken to the Income Tax Appellate Tribunal. The Tribunal held that the assessments were barred by time because Section 144 B, in its view, applied only to assessments made under Section 143(3) and could not be applied to assessments and reassessments made under Section 147. At the instance of the assessees as also the Revenue, the following questions were referred to the High Court at Delhi:
"1. Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that provisions of Section 144-B were not applicable to assessments made pursuant to the provisions of section 147 in the case of J. Dalmia, HUF, for assessment years 1947-48 and 1948-49 and in the case of AOP for assessment year 1947-48
2. Whether on the facts and in the circumstances of the case, the Tribunal was justified in holding that the provisions of Section 144-B are procedural and apply to all assessments pending at the time when the said provision was introduced by Taxation Laws (amendment) Act, 1975 w.e.f. 1-1-1976
3. Whether on the facts and in the circumstances of the case, Tribunal was right in law in holding that assessments in the case of J. Dalmia (HUF) for A. Ys. 1947-48 and 1948-49 and in the case of AOP for A. Y. 1947-48 were barred by time limitation -
The High Court took the view that the provisions of Section 144-B were applicable to assessments and reassessments made under Section 147 and answered the questions accordingly.