In Brief
A revenue case turning on whether an income-tax assessment was time-barred. The assessment was drafted before the deadline (31.03.1984) but finalized after it (01.09.1984). The Revenue claimed the deadline was extended because the draft went to an Inspecting Assistant Commissioner (IAC) for approval under Section 144B. The assessee argued that since the IAC had been given concurrent powers by the Commissioner, the draft should never have been sent to the IAC, and so no time could be excluded. The Supreme Court held that concurrent jurisdiction does not strip the ITO of power; Section 144B applies unless the IAC actually exercises the ITO's functions. Here, the ITO remained the assessing authority, so the period with the IAC cannot be excluded. The assessment is time-barred.
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