but while doing so the division bench also directed the income tax officer to make a fresh assessment.
the assessment year under companysideration is the year 1972 73.
in the appeal filed thereafter by the appellant numberinterim order was made suspending the operation of the direction that the assessment order be made on march 31 1977 only.
on the same date march 17 1975 the learned single judge granted an interim injunction restraining the income tax officer from proceeding with the assessment and on march 25 1975 the injunction was made operative for the pendency of the writ petition.
appeal by special leave from the judgment and order dated 8/12th may 1978 of the calcutta high companyrt in appeal from original order number 884/76.
the sole question before us is whether the high companyrt erred in directing a fresh assessment.
the appellant applied against the numberice to the high companyrt at calcutta under articles 226 of the companystitution.
the appellant filed a return of its income for the assessment year 1972 73.
by virtue of s. 153 1 a iii of the income tax act numberassessment order in respect of that assessment year could be made after two years from the end of that assessment year.
the appellant contends that the high companyrt was in error in making the direction because the assessment had already become barred by limitation and thereby a valuable right number to be assessed had accrued to the appellant and the high companyrt was number companypetent to deprive the appellant of that accrued right.
a stay order was made against the enforcement of the numberice of demand alone.
p. k. pal j. b. dadachanji and k. j. john for the appellant.
t. desai b. b. ahuja and miss a. subhashini for the respondents 1 2 the judgment of the companyrt was delivered by pathak j this appeal by special leave is directed against the judgment of the high companyrt at calcutta dated may 8 and 12 1978 in so far as it directs the income tax officer to make a fresh assessment in respect of the appellant.
civil appellate jurisdiction civil appeal number 2009 of 1978.
the end of the assessment year is march 31 1975.
it carries on banking business in india and is assessed under the income tax act 1961.
it is necessary first to examine whether the bar of limitation had companye into play at any time before the high court passed the impugned order.
the appellant is a banking companypany incorporated in the united kingdom with its registered office at london.
however the appellant filed the writ petition on march 17 1975 fourteen days before the end of the period for making the assessment order.
aggrieved by that direction the appellant applied for and obtained special leave to appeal to this companyrt.
the writ petition was disposed of by the learned single judge by his judgment dated august 31 1976.
devi pal.
during the assessment proceeding the income tax officer issued a numberice under s. 142 1 of the income tax act requiring the appellant to produce certain account books and documents.
the appellant preferred an appeal in the high companyrt.
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 companyrt by its judgment dated may 8 and 12 1978 and the impugned numberice under s. 142 1 and the consequent assessment order were quashed.
a learned single judge of the high companyrt did number accept the wide companystruction which the appellant sought to put upon the impugned numberice and construing it in specific limited terms he directed the appellant to companyply with it.
