Case: Commissioner of Income Tax, Kerala Vs. Associated Engineering Corporation Private Limited

The question referred to the Tribunal is covered by the judgment of this court in M. M. Parikh, Income-tax Officer v. Navanagar Transport and Industries Ltd. This court held that an order passed under section 23A of the Indian Income-tax Act, 1922, after it was amended by the Finance Acts of 1955 and 1957 directing payment of additional supertax by a company to which the section applies and which has not distributed dividend as prescribed therein is not an order of assessment within the meaning of section 34(3) of the Act and to such an order the period of limitation prescribed under section 34(3) does not apply.

Reasoning: An order was passed under section 23A of the Act on April 15, 1963. The order was passed indisputably more than four years after the end of the year of assessment in which the income could be assessed. In view of the judgment of this court in the Navanagar Transport case the order is not an order of assessment. Not being an order of assessment the period of limitation prescribed by section 34(3) has noanswer to the question referred will be that the order is not barred by limitation under section 34(3) of the Income-tax Act, 1922