KUMAR JAGDISH CHANDRA SINHA (DEAD) THROUGH LRS. ETC.versusCOMMISSIONER OF INCOME-TAX, WEST BENGAL

          KUMAR JAGDISH CHANDRA SINHA (DEAD)                                         A
                   THROUGH LRS. ETC.
                           v.
        COMMISSIONER OF INCOME-TAX, WEST BENGAL

                               APRIL 23, 1996
                                                                                     B
            [B.P. JEEVAN REDDY AND.K.T. THOMAS, .l.l.J

      Income Tax Act, 7967: Section.s 739(1), (2), (4), (5) a11d 753( l)(c).

       Income Ta.\-Ret!lln-Revised ret!lln-Fi/i11g of-Validit;-AYI 7964-             C
65 and 1965-66-Person filing retllln under S. 139(4) not entitled lo file
revised retum under S 139(5)-Suclz revised 1~twn was invalid and not
contemplated under S. 139(5)-Hence, period of limitation under S.
153( l)(c) for completio11 of assessment 11ot applicable.

      Income Ta.l-S. 153(l)(b) and S. 271(1)(c)-Scope and applicability              D
of-Expression "in a case falling within clause (c) of .\'lib-section ( 1) of
Section 271" occuning in S. 153( l){b)-Meaning of-Held: meant case in
lvhich lvithin the prescribed period of liniitatiun the ITO had initiated
proceedings under S.27 J( 1)(c) or recorded and conummicatcd to the asscssee
his opinion that the case fell within S. 271 (J) ( c)-{Jtlwwisc, the larger peliod   E
for making as.re.rnnent prmidcd by S. 153( 1) (b) ·would not be applicable.

       The appellant-assessee did not furnish returns for AYs 1964-65 and
1965-66 within the period prescribed by Section 139(1) of the Income Tax
Act, 1961. No notice under Section 139(2) of the Act was served upon him.
Taking advantage of Section 139(4) of the Act he filed a return each for             F
AYs 1964· 65 and 1965-66 and also filed revised returns for the said AYs.
In both the cases the Income Tax Officer made the assessment orders
beyond the period or four years prescribed by Section t53(l)(a)(i) or the
Act but within one year from the date of filing of the revised returns as
prescribed by Section 153(1)(c) of the Act. The Income Tax Officer also              G
initiated penalty proceedings under section 271 (l)(c) of the Act in respect
of both the AYs.

      The questions arising in the instant case were the validity of the
revised returns filed by the appellant-assessee and the validity of the
assessment orders made by the Income Tax Officer by invoking Section                 1-1
                                       657
    658                  SC"PREME COURT REPORTS [1996] SUPP. I S.C.R.

A   153(l)(c) of the Act whkh prescribed alternate period of limitation for
    completion of assessment.

          Allowing the appeal, this Court

          HELD : 1. The very fact that the right lo furnish a revised return
B   has been given under Section 139(5) of the Income Tax Act, 1961 to a
    person who has filed a return under Section 139(1) or (2) of the Act means
    by necessary implication that such a right is denied to a person who files
    the return under Section l39(4). In the instant case the period allowed for
    making the assessment is four years from the end of the relevant assess-
  ment year as provided by Section 153(l)(a)(i). Section 153(l)(c) provides
c an alternate period of limitation. The High Court's opinion that the
    language employed in Sec1ion 153(l)(c) contemplates the filing of a revised
    return under Section 139(4) is not correct. Section 153(l)(c) employs both
    the expressions 'return' and 'revised return' and refers to both the sub-
    sections (4) and (5) of Section 139. Reasonably read it means the return
D   filed under sub-section (41 and the revised return filed under sub- section
    (5) of Section 139. It would not be reasonable to construe the said clause
    as indirectly conferring a right which is not conferred directly by Section
    139(5) of the Act. Therefore, no revised return can be filed under Section
    139(5) in a case where the return is filed under Section 139(4). Once this
E   is so the revised returns ti~ed by the assessee for both the assessment years
    i.e. 1964-65 and 1965-66 were not valid in law and could not have been
    treated and acted upon as revised returns contemplated by Section 139(5)
    of the Act. It means that Section 153(l)(c) of the Act was not attracted in
    the instant case. Hence, the assessments made beyond the prescribed
    period of four years (but within five years) are not saved by Section
F   153(1)(c) of the Act. [665-F-H; 666-A-F; 669-F]

          0.P. Malhotra v. Commissioner of Income Tax, 129 I.T.R. 379 (Del);
    Dr. S.B. Blwrfiava v. Commissioner of Income Tax, 136 I.T.R. 559 (All);
    Vimal Chand v. Commissioner of Income Tax, 155 l.T.R. 593 (Raj) and
G   Eapen Joseph '" Commis.1ioner of Income Tax, 168 I.T.R. 26 (Ker), ap-
    proved.

          2.1. The words "in a case falling within Section 27l(l)(c) of the Act"
    mean that \\ithin the period of four year (or whatever the applicable period
                                                                                    -
    of limitation), the Income Tax Officer must either initiate proceedings
H   under Section 27l(l)(c) of the Act or record his opinion that it is a case
                   KR. J.C. SINHA v. C.l.T. [B.P. JEEVAN REDDY, J.]            659

falling under Section 271(l)(c); unless any such step is taken, it cannot be          A
said that it is a case falling under Section 271(1)(c). [666-H; 667-A-B]

         Commissio11er of !11come Tax v. Suraj Pal Singh, (1991)188 I.T.R. 297
(SC), followed.

         Commissioner of Income Tax v. Suraj Pal Singh, (1977) 108 I.T.R. 746         B
(All), referred to.

      2.2. In the instant case the Income Tax officer had not initiated the
proceedings under Section 27l(l)(c) within a period of four years
prescribed by Section 153(1)(a)(i) (which is the applicable provision
herein) nor had he made any order nor record a note in the relevant file              C
indicating that it is a case falling under Section 271(1)(c). (If he made any
such order or note in the file as aforesaid, he should have communicated
it to the assessee the expression 11 communicated" being understood as
explained by this Court in State of Punjab v. Khemi Ram. In such a
situation it must be held that the orders of assessment in respect of both            D
the assessment orders concerned herein are barred by time and must he
held to be invalid in law. [669-B·D]

         State of Punjab v. Kllemi Ram, [1970] 2 S.C.R. 657, relied on.

      CIVIL APPELLATE JURISDICTION : Civil Appeal Nos. 1604-05                        E
of 1985.

     From the Judgment and Order dated 10.6.81 of the Calcutta High
Court in I.T.R. No. 83 of 1975.

         A.K. Sen, M.N. Tandon and S. Ghosh for the Appellants.                       F
         Dr. R.R. Misra, Ms. Laxmi Iyengar and S.N. Terdol for the Respon-
dents.

         The Jud!,'111Cnt of the Court was delivered by
                                                                                      G
      B.P. JEEVAN REDDY, J. : These appeals are preferred against the
judgment of the Calcutta High Court answering the three questions
referred to it under Section 256(1) of the Income-True Act against the
assessee and in favour of the Revenue. The three questions are :
           11
                1. Whether, on the facts and in the circutnstances of the case, the   H
    660                  SUPREME COURT REPORTS [1996) SUPP. 1 S.C.R.

A           Tribunal was correct in law in holding that the return of income
            furnished by the assessee by virtue of the provisions contained in
            sub-section (4) of Section 139 of the Income-Tax Act, 1961 beyond
            the time allowed under sub-section (1) or sub-section (2) of the
            said section, could not be construed as a return furnished under
            either of the latter sub-section and in that view holding that the
B
            assessee was not entitled to file a revised return under sub-section
            (5) of Section 139 of the Income Tax Act, 1961 ?

            2. Whether, on the facts and in the circumstances of the case, the
            assessment made by the Income Tax Officer for the assessment
c           years 1964-65 and 1965--66 were within the time limit prescribed in
            section 153(l)(b) of the Income Tax Act, 1961 ?

            3. Whether, on the facts and in the circumstances of the case, the
            tribunal was correct in law in holding that the cases for the
            assessment years 1964-65 and 1965-66 were such as 'failing within
D           clause (c) of sub-section (1) of section 271 ?"

          While Question No. 1 wa:; referred at the instance of the Revenue,
    Questions 2 and 3 were referred at the instance of the assessee. The two
    assessment years concerned herein are 1964-65 and 1965- 66.

E         For the assessment year 1964-65, the assessee did not furnish a return
    within the period prescribed by sub-section (1) of Section 139. No notice
    under sub-section (2) of Section 139 was served upon him. The assessee
    submitted a return on August 13, 1964 disclosing a total income of Rs.
    42,131. This return, it is not in dispute, was filed under, and taking
F   advantage of the provision contained in, sub-section (4) of Section 139. On
    January 18, 1969 he filed a revised return disclosing a total income of Rs.
    40,388. The asscssee also disclosed in this revised return a capital loss of
    Rs. 1,60,672 on the sale of a plol of land. The Income Tax Officer did not
    complete the assessment within four years of the expiry of the assessment
G   year 1964-65 i.e., on or before 31.3.1969. He made the assessment order
    on January 15, 1970. He also initiated penalty proceedings under Section
    27l(l)(c) and referred the same to Inspecting Assistant Commissioner as
    required by law in force at that time.

          In respect of the assessment year 1965-66 also, the assessee did not
H file a return within the period prescribed by Section 139(1). No notice
            KR.J.C. SINHA v. C.I.T. [B.P.JEEVAN REDDY,J.]             661

under Section 139(2) was served upon him. He filed a return under Section A
139(4) on December 17, 1965 disclosing an income of Rs. 3,76,628 which
included a capital gain of Rs. 3,52,420. On July 17, 1969 the assessee filed
a revised return showing the total income at Rs. 2,50, 719. This figure was
arrived at after reducing the capital gains from Rs. 3,52,420 (as disclosed
in original return) to Rs. 2,52,119. The Income Tax Officer did not com-
plete the assessment before the expiry of four years from the end of the
                                                                             8
assessment year 1965-66 i.e., on or before 31 st March, 1970. He made the
assessment order only on July 6, 1970. In this year too, the Income Tax
Officer initiated penalty proceedings and referred the same to Inspecting
Assistant CommisSioner.
                                                                            c
      Against the orders of assessment in respect of both the assessment
years, the assessee went up in appeal to Appellate Assistant Commissioner.
In these appeals he disputed the very validity of the assessment orders on
the ground that they have been made beyond the prescribed period of four
years. He submitted that the revised returns filed by him were ihadmissible D
in law and therefore could not serve _to extend the period of making the
assessment as provided by Section 153(1)(c). He also disputed the correct-
ness of various additions made by the Income Tax Officer. The Appellate
Assistant Commissioner allowed the appeals on the ground that the assess-
ment orders having been made beyond the period of four years prescribed
by Section 153(1)(a)(i) (as in force at the relevant time), they are bad in E
law. He held that inasmuch as the returns in both the assessment years
were filed under Section 139(4), no revised returns could have been filed
by the assessee. He held that sub-section (5) of Section 139 permits a
revised return to be filed only where the return is filed under sub-section
(1) or sub-section (2) of Section 139 but not where the return is filed under F
sub-section (4) of Section 139. In this view of the matter, the Appellate
Assistant Commissioner held, the Income Tax Officer cannot claim the
benefit of extended period provided by clause (c) of sub-section (1) of
Section 153.

      The Revenue challenged the decision of the Appellate Assistant G
Commissioner before the Tribunal. The Tribunal agreed with the Appel-
late Assistant Commissioner that no revised return can be filed by an
assessee who has filed the return under Section 139(4) and that, therefore,
the so-called revised returns filed by the assessee were not valid in law.
The Tribunal, however, allowed the appeals filed by the Revenue on the H
    662                   SUPREME COURT REPORTS [1996] SUPP. 1 S.C.R.

A ground that the assessment orders must be held to have been made within
    the time prescribed by clause (b) of sub-section (1) of Section 153. In other
    words, the Tribunal was of the opinion that since there was a prima facie
    case for initiating action under Section 271(l)(c), the assessment order
    could have been made within a period of eight years from the end of the
    relevant assessment year, as provided by clause (b) of sub-section (1) of
B
    Section 153, as it stood at the relevant time.

          At the request of Revenue and the assessee, as stated above, three
    questions were referred by foe Tribunal under Section 256(1). The High
    Court discussed the legal position at length and held that even in the case
c   of a return filed under Section 139(4), a revised return is permissible in
    law, Accordingly, the High Court held, the assessment orders made must
    be deemed to have been made within the period of limitation provided by
    Section 153(1)(c). The High Court also held that the Tribunal was right in
    holding that in the facts and circumstances of the case, the larger period
    of eight years provided by cl2,use (b) of sub-section (1) of Section 153 was
D   also attracted in this case and that on this count also, the assessment orders
    must be held to have been made within the period of limitation prescribed
    by the Act.

          Mr. Ashok Sen, learned counsel for the assessee seeks to canvass the
E   correctness of the view taken by the High Court.

           It would be appropriate to set out relevant provisions of the Act as
    obtaining at the relevant time for a proper appreciation of the questions
    arising herein. Sub-sections (1), (2), (4) and (5) of Section 139 read thus:

F            "139. Retum of income. - (1) Every person, if his total income or
             the total income of any other person in respect of which he is
             assessable under this Act during the previous year exceeded the
             maximum amount v1hich is not chargeable to income~tax shall
             furnish a return of h:is income or the income of such other person
             during the pervious year in the prescribed form and verified in the
G            prescribed manner and setting forth such other particulars as may
             be prescribed -

                  (a) in the case of every person whose total income, or the
                  total income of any other person in respect of which he is
H                 assessable under this Act, includes any income from business
    KR.J.C.S!NHAv. C.l.T. [B.P.JEEVAN REDDY,J.j                   663

     or profession, before the expiry of six months from the end         A
     of the previous year or where there is more than one previous
     year, from the end of the previous year which expired last
     before the commencement of the assessment year, or before
     the 30th day of June of the assessment year, whichever is
     ]ater;
                                                                         B
     (b) in the case of every other person, before the 30th day of
     June of the assessment year ;

     (proviso omitted as unnecessary).

(2) In the case of any person who, in the Income-tax Officer's           c
opinion, is assessable under this Act, whether on his own total
income or on the total income of any other person during the
previous year, the Income-tax Officer may, before the end of the
relevant assessment year, serve a notice upon him requiring him
to furnish, within thirty days from the date of service of the notice,   D
a return of his income or the income of such other person during
the previous year, in the prescribed form and verified- in the
prescribed manner and setting forth such other particulars as may
be prescribed :

(Proviso omitted as unnecessary).                                        E

[4(a) Any person who has not furnished a return within the time
allowed to him under sub-section (1) or sub-section (2) may before
the assessment is made furnish the return for any previous year at
any time before the end of the period specified in clause (b), and
the provisions of clause (iii) of the proviso to sub-section (1) shall
                                                                         F
apply in every such case. [Subs. by Finance Act No. 19 of 1968
(w.e.f. 1.4.1968)].

(b) The period referred to in clause (a) shall be -
                                                                         G
     (i) where the return relates to a previous year relevant to any
     assessment year commencing on or before the 1st day of
     April, 1967, four years from the end of such assessment year;

     (ii) where the return relates to a previous year relevant to the
     assessment year commencing mi the 1st day of April, 1968, H
    664                  SUPREME COURT RFPORTS 11996] SUPP. 1 S.C.R.

A               three years from the end of the assessment year;

                (iii) where the return relates to a previous year relevant tu
                any other assess1nent year, t\VO years from the end of such
                assessment years].

B          (5) If any person having furnished a return under sub- section (1)
           or sub-section (2), discovers any omission or any wrong statement
           therein, he may furnish a revised return al any time before the
           assessment is made."

       Sub-section (1) of Section 153, which alone is relevant for our
c purposes read thus :

           "153. Ti111e-li111it for con1pletion of assessn1ents and re-assessnzcnts-
           (1) No order of assessment shall be made under Section 143 or
           Section 144 at any time after -
D
                [(a) the expiry of -

                (i) four years from the end of the assessment year in which
                    the incon1e \Vas first assessable, where such assessment
                    year is an assessment year commencing on or before the
E                   1st day of April, 1967;

                (ii) three years from the end of the assessment year in which
                     the income was first assessable, where such assessment
                     year is the assessment year commencing on the 1st day of
                     April, 1968;
F
                (iii) two years from the end of the assessment year in which
                     the income was first assessable, \\'here such assessment
                    year is an a~scssmcnt year commencing on or after the 1st
                    day of April, 1969; or! !Subs. by Finance Act, 1968 (w.c.f.
G                   1.4.1969)].

                (b) the expiry of eight years from the end of the assessment
                year in which the income was first assessable, in a case falling
                within clause (c) of sub-section(!) of Section 271; or

H                (c) the expiry of one year from the date of the filing of return
              KR. J.C. SINHA v. C.l.T.113.P. JEEV AN REDDY,J.]               665

               or a revised return under sub-section (4) or sub- section (5)        A
               of Section 139,

        whichever is latest. 11

      Section 271(1)(c) ran thus:
                                                                                    B
         271. Failure to ftanish retunz~~ co111ply i,vith notices, conceabnent of
         11



        income, etc. - (1) If the Income-tax Officer or the Appellate
         Assistant Comn1issioner in the course of any proceedings under
         this Act, is satisfied that any person -

               (clause (a) and (b) omitted as unnecessary;)                         c
              (c) has concealed the particulars of his income or i* * *] (The
              word "deliberately'' omitted by Finance Act, 1964 (w.c.f.
              1.4.1964)] furnished inaccurate particulars of such income,

         he may direct that such person shall pay by way of per.alty, -             D


              [(iii) in the cases referred to in clause (c), in addition to any
              tax payable by him, a sum which shall not be less than, but
              which shall not exceed twice, the amount of the income in             E
              respect of which the particulars have been concealed or
              inaccurate particulars have furnished.]"

      The first question is whether a person who files a return under
Section 139(4) is entitled to file a revised return before the assessment is
made. We think not. The furnishing of a revised return is provided by               F
sub-section (5) of Section 139. According to this sub-section "any person
having furnished a return under sub-section (1) or sub-section (2)" may
furnish a revised return at any time before the assessmf'nt is made if he
discovers any omission or any wrong statement in the original return. The
very fact that this right is given to a person who has filed a return under         G
sub-section (1) or sub-section (2) of Section 139 means by necessary
implication that such a right is denied to a person who files the return
under Section 139(4). The High Court has, however, taken the other view
relying upon the language of clause (c) of sub-section (1) of Section 153.
Sub-section (1) of Section 153 prescribes the time limits for completing the
assessment. In the present case, it is not in dispute, the period allowed for       J-1
    666                   SUPREME COURT REPORTS [1996) SUPP. 1 S.C.R.

A   making the assessment is four years from the end of the relevant assessment
    year as provided by Section 153(1)(a)(i). Section 153(1)(c) provides an
    alternate period of limitation. It says that if the assessment is made
    before "the expiry of one year from the dale of the filing of return or a
    revised return under sub-section (4) or sub-section (5) of Section 139"
    it would yet be within limitation notwithstanding the fact that it may be
B   barred under other provisions contained in sub-section (!.) of Section
    153. The High Court is of the opinion that language employed in clause
    (c) of Section 153(1.J contemplates the filing of a revised return even in
    a case where original return is filed u,1der sub-section (4). We find it
    difficult to agree. Clause ( c) employ both the expressions return and
    revised return and refers to both the sub-sections (4) and (5) of Section
c   139. Reasonably read it means the return filed under sub-section (4)
    and the revised return filed under sub-section (5) of section 139. It
    would not be reasonable to construe the said clause as indirectly con-
    ferring a right which is not conferred directly by sub-section (5) of
    Section 139. The High Court has drawn a distinction between a revised
D   return and a rectified return. May be, there is a distinction. We are not
    concerned here with a rectified return but what was avowedly a revised
    return and which was in truth a new return. We find it equally difficult to
    agree with the rest of the reasoning of the High Court on this aspect. We
    are, therefore, of the opinion that no revised return can be filed under
    sub-section (5) of Section 139 in a case where the return is filed under
E   Section 139(4). Once this is so the revised returns filed by the assessee for
    both the said assessment years were not valid in law and could not have
    been treated and acted upon as revised returns contemplated by sub-sec-
    tion (5) of Section 139 - which means that Section 153(1)(c) was not
    attracted in this case. Indeed this is the view taken by all the High Courts
    as conceded by Mr. Ashok Sen. See O.P. Malhotra v. Commissio11er of
F
    Income Tax, 129 I.T.R. 379 Delhi, Dr. S.B. Bhargava v. Commissio11er of
    J11come Tax, 136 I.T.R. 559 All, Vbnal Cha11d v. Commissio11er of I11come
    Tax, 155 I.T.R. 593 - Raj. and Eape11 Joseph v. Commissio11er of Income
    Tax, 168 i.T.R. 26 - Ker ala. Only the Calcutta High Court bas taken the
    contrary view with which we are unable to agree.
G
           The understanding of clause (b) of sub-section (1) of Section 153,
    however, appears to be a difficult one, because of the ambiguous language
    employed therein. It says that "in a case falling within clause (c) of sub-sec-
    tion· (1) of Section 271", the period for making an order of assessment is
H   eight years. Now what do the words "in a case falling within clause (c) of
                KR. J.C. SINHA v. C.l.T. [B.P. JEEVAN REDDY, J.]            667

    sub-section (1) of Section (1) of Section 271" mean? Different High Courts A
    have spoken in different voices. Broadly speaking there are two streams of
    thought. The first one is this : within the period of four years (or whatever
    the applicable period of limitation), the Income Tax Officer must either
    initiate proceedings under Section 271(1)( c) or record his opinion that it
    is a case falling under Section 271.(l)( c); unless any such step is taken, it
                                                                                   B
    cannot be said that it is a case falling under Section 271(1)( c); if this
    safeguard is not provided, the Income Tax Officer would be armed with a
    dangerous weapon and the assessee would be at his mercy; the Damocle's
    sword would be kept handing over the head of the assessee all the time.
    (This was said in the context of the provisions of 1922 Act where, in such
    a situation, no period of limitation was prescribed). An Income Tax Officer    c
    the argument runs further - who is remiss in performance of his duties and
    does not make an order of assessment within the period prescribed, would
    make an assessment thereafter· and start proceedings under Section
    271(1)(c) to justify the making of the order of assessment beyond the
    prescribed period. As against this, the second stream of thought runs thus: D
    the power conferred by Section 153(1)(b) is a power conceived in the
    interest of public and is designed to curb concealment of income by the
    assessees; while construing the said provision, the possibility of abuse or
J   misuse should not be the guiding consideration; the law presumes, and the .
    Court must also presume that every power would be used fairly and for E
    advancing the purposes which the provision seeks to achieve. There are nu
    words in the clause, - this argument runs further - which indicate by
    necessary implication that either the proceedings under Section 271(1)(c)
    should be initiated or that some order should be passed or record made
    by the Income Tax Officer within the period of four years to indicate that
                                                                                   F
    it is a case falling under Section 271(1)(c); imposing such a requirement
    would in effect amount to amending the clause and reading words into it
    which are not there; if in a given case, the Income Tax Officer invokes the
    said provision without justification, the assessee is not \Vithout a remedy;
    the Act provides adequate remedies by way of appeals, revision and
    reference to rectify any misuse or abuse of powers by the Income Tax G
    Officer; if an Income Tax Officer makes an assessment order after the
    expiry of four years and within eight years relying upon Section 27l(l)(c)
    and if it is found by the higher authorities that it was not a case falling
    within Section 271(1)(c), it is obvious, the assessment order will be set
    aside, besides quashing the penalty proceedings. It is, therefore, not neces- H
    668                     SUPREME COURT REPORTS [1996] SUPP. l S.C.R.

A sary, - it is argued - that within the period of four years (or the other
    applicahle period of limitation as the case may be), the Income Tax Officer
    should if\sue a notice or pass an order or make a record that it is a casi:
    falling within Section 271( 1)( c) and that the validity of the assessment order
    should be judged with reference to the date on which the assessment order
    is made.
B
           We fintl thd both the streams of thought aforesaid are equally
    attractive. Each has an appeal of its own. We are, however, relieved of
    making a choice in the matter because of the decision of this Court in
    Commissioner of Income Tax v. Suraj Pal Singh, (1991) 188 l.T.R. 297. It
C   was an appeal against the decision of the Allahabad High Court in Com-
    missioner of Income Tax v. Surajpal Singh, (1977) 108 I.TR. 746. The
    Allahabad High Court discussed this problem at length (at pages 752 and
    753), but ultimately did not express any final opinion for the reason that it
    was not necessary to do so in view of the facts of and findings recorded in
D   that case. We do not think it necessary to set out the entire reasoning of
    the High Court. It is sufficient to state that it espouses the first stream of
    thought mentioned above. On appeal, this Court purported to affirm the
    said line of thought which is evident from the following observations in the
    judgment, which, in effect, is practically the whole of the judgment :

E              "The Income-tax Appellate Tribunal referred the following ques-
               tion to the High Court :

                  'Whether, on the facts and in the circumstances of the case,
               the Tribunal was right in holding that the assessment made by the
               Income-tax Officer was barred by limitation.'
F
               The High Court, on a detailed consideration of the facts and
               circumstances of the case, held that the Tribunal was right in
               holding that the case was not one to which the provisions of section
               271(1)( c) of the Income-tax Act, 1961, corresponding to section
               28(1)(c) of the old Act apply inasmuch as the Income-tax Officer
G
               had not recorded any finding or brought any material on record
               within a period of 4 years to show that it was a case of concealment.
               The High Court agreed with the findings recorded by the Tribunal
               that the assessment was clearly time-barred.

H              After hearing learned counsel for the appellant, we do not find
               KR. J.C. SINHA v. CJ.T. [B.P. JEEVAN REDDY, J.]                           669

           ·any good reason to take a different view. The appeal fails and is,                   A
            accordingly, dismissed. There will be no order as to costs."

      Since this Court has already taken one view and because the said
view is one of the two possible views of the matter, we follow the same and
accordingly uphold the first stream of thought mentioned above.
                                                                                                 B
      Applying the above understanding of Section 153(1)(b), it must be
held in this case that the assessment is barred by time. Admittedly the
Income Tax Officer had not initiated the proceedings under Section
271(1)(c) within a period of four years prescribed by Section 153(1)(a)(i)
(which is applicable provision herein) nor had he made any order or record
or a note in the relevant file indicating that it is a case falling under Section
                                                                                                 c
271(1)( c). (If he made any such order or note in the file as aforesaid, he
should have communicated it to the assessee - the expression 11 communi-
cated" being understood as explained by this Court in State of Punjab v.
Khemi Ram, [1970] 2 S.C.R. 657. * In such a situation it must held that the
orders of assessment in respect of both the assrssment orders concerned                          D
herein are barred by time and must be held to be invalid in law.

      For the above reasons, the appeals are allowed. Question No. 1 is
answered in the affirmative holding that in case of a return filed under
sub-section (4) of Section 139, a revised return contemplated by sub-sec-                        E
lion (5) of Section 139 cannot be filed. Question No. 2 is answered in the
negative. It is held that the orders of assessment made in respect of the
said two assessment years are barred and are not saved by Section
153(1)(b). Question No. 3 is really consequential to Question No. 1. Once
we hold that no revised returns could be filed by the assessee for the said
two assessment years, the assessments made beyond the prescribed period                          F
of four years (but within five years) are not saved by Section 153(1)(c).

         There shall be no order as to costs.

v.s.s.                                                                  Appeals allowed.         G



     Which means that it is enough if it is put in the course of transn1ission before the
     expiry of the relevant period; it is not necessary that it should also be received by the
     assessee- or his representative within the said period.