1. This is an appeal by the revenue against the order of the CIT(A) for assessment year 1989-90.
2. An interesting legal issue has arisen in this case and that is about the meaning of the words "share held in a company" used in the proviso to section 2(42A) of the Act. The section and the proviso as were in force at the relevant time, read as under : "2(42A) 'short-term capital asset' means a capital asset held by an assessee for not more than thirty-six months immediately preceding the date of its transfer : Provided that in the case of a share held in a company, the provisions of this clause shall have effect as if for the words 'thirty-six months', the words 'twelve months' had been substituted." 3. On a close reading of this section it becomes clear that ordinarily if the capital asset is held for a period not more than thirty-six months before the date of transfer it is a short-term capital asset.
The proviso, however, carves out certain exceptions. One of such exception is that if the asset is a share held in a company it would be a short-term capital asset if the share was held for not more than twelve months immediately preceding the date of transfer.
4. The assessee transferred in February, 1989 forty-seven out of ninety preference shares held in M/s. Somnath Construction (P.) Ltd. acquired and held by her since 10-1-1987. These shares were held for twenty-five months, i.e. more than twelve months, but less than thirty-six months before the date of transfer and the capital gain made on the sale thereof of Rs. 3,50,000 (sale price of Rs. 5,85,000 minus cost of acquisition of Rs. 2,35,000) was claimed to be a capital gain on the sale of a long-term capital asset subject to deductions under section 48(2) and section 54F of the act by virtue of the provisions of section 2(29A), which defines the long-term capital asset to mean a capital asset, which is not a short-term capital asset.
5. The revenue's case, however, is that this transfer of share was not a mere transfer of share, but, in fact, an inherent right to occupation in a flat through the medium of preference shares and, therefore, it was not a transfer of long-term capital asset, but a short-term capital asset. The Assessing Officer compares the transaction with a 'folklore' where a widow sold her horse for a very nominal cost but compulsorily with a cat at the equivalent cost of a horse for she wanted to give away the cost of the horse in charity to pave way for her deceased husband to the heaven, but without losing the money value of the horse.
According to him, what the assessee has transferred was the inherent right of occupation in the flat and as such since the assessee has right to enjoy, occupy and transfer and this right is through the medium of preference shares. He then referred to the general concept of a shareholder, who is equally entitled to all the assets in the proportion of his shares, there being no demarcation of any specific assets with specified shares and then compared the preference shares held by the assessee and concluded that these were not regular or normal shares, though not illegal. Such shares, according to him, are recognised by law and courts in terms of assets they represented, viz.
right coming with them like sections 23 and 269UA of the I.T. Act. He also referred to the provisions of section 48(2) giving the benefit on sale of such shares. He then referred to the Supreme Court decision in the case of K. H. Shah v. M. J. Joshi AIR 1975 SC 1470 and the Bombay High Court decision in the case of Hanuman Vitamins Foods (P.) Ltd. v.State of Maharashtra & Superintendent of Stamps No. 1820 of 1986.
6. The CIT(A) accepted the assessee's claim by observing in para 8 of his order as under : "8. I have considered the submissions of the appellant carefully. It is seen that the Assessing Officer has arrived at his conclusion relying upon the two judgments which are under other Acts and which have no bearing on the interpretation of the provisions of the Income-tax Act because these judgments were rendered in a different context. Section 27(3) is a deeming provision which makes a member of a company to whom a flat has been allotted the real owner. It is a settled principle of law that deeming provisions should be strictly construed and should be confined to the purposes for which they were enacted and not for the other purposes of the Act. It has been made clear at the beginning of section 27 that the definitions enumerated in section 27 including section 27(3) are applicable only for the purposes of section 22 to section 26. If the legislative intent were to bring provisions regarding capital gains also within the purview of section 27(3), it would have been mentioned at the beginning of section 27." 7. We have heard the parties and considered their rival submissions.
M/s. Somnath Constructions Pvt. Ltd. was incorporated on 28-11-1984.
Clause 6 of the Articles of Association of the Company provides for the terms of issue of preference shares, ninety-seven of which were held by the assessee. This clause reads as under : Out of the authorised capital of the company the Preference Shares of Rs. 5,000 each shall be issued on the following terms and conditions : (ii) The Preference Shares shall carry a right to non-cumulative preferential dividend at the rate of 2 % per annum subject to deduction of tax at source.
(v) The holding of such number of Preference Shares in the capital of the Company and keeping of such amount as deposit with Company and payment of such other dues, charges and amounts as may be determined by the Board of Directors, shall confer on the holder thereof the right of occupation and use of a designated flat, shop, garage, parking space and/or other portion (hereinafter referred to as 'the Stipulated Premises') of the building being constructed by the Company, which building will be known as, 'Babuline Complex', on the land owned by the Company and situate at Malad, Bombay, and more particularly described in Annexure 'A' attached hereto and upon the terms specified hereinafter and such further terms as may be specified by the Board of Directors at the time of issue of the Preference Shares. The right of occupancy in the Stipulated Premises given to each block of preference shareholder will be designated at the time of allotment itself of the Preference Shares which right shall not be modified thereafter except to the extent provided herein.
(vi) The amount payable for Preference Shares on application, allotment and calls, and for deposits and other dues, shall be such amount and shall be payable at such time as may be determined by the Board of Directors.
(vii) Without prejudice to the Company's other rights under these Articles and/or in law, the Preference shareholder shall be liable at the option of the Company to pay to the Company interest at the rate of 20 (twenty) per cent per annum on all amounts due and payable by the Preference Shareholder towards the preference share, deposit, etc. if any such amount remains unpaid for seven days or more after becoming due.
(viii) The Preference Shares may be issued to any person including minor, firm, company, trusts, etc. as may be permitted by law. For the sake of convenience, here in after the Preference Share-holder, is referred to as 'he', or 'him' or 'his' as the case may be." 8. Terms of occupation rights are stated in Part B of Article 6 granting occupancy rights to a specified number of preference shareholders, more detailed in Annexure 'B' thereto, which are extracted in extenso as under : A Preference Shareholder holding a specified number of preference shares shall be entitled to occupy and use and/or to nominate a person/s to occupy and use the Stipulated Premises in the said building on the terms and conditions as more fully set out in Annexure 'B' attached hereto.
9. Every Preference Shareholder (and in case where Preference Shares are held by more than one person, the said joint holders) holding the specified number of shares shall have the right to occupy and use the Stipulated Premises upon the following terms and conditions : (1) Every Preference Shareholders shall be entitled to occupy and use and/or to nominate a person/s to occupy and use the Stipulated Premises in the said building subject, however, to the provisions hereof. The Preference Shareholder shall notify the Company immediately in the event of any change in nomination made by him.
Provided that the Preference Shareholder or his nominee shall pay or reimburse to the Company any increase in rates, assessments, taxes, dues and fees consequent upon such nomination or change therein. If the Company so decides, the nomination or any change therein shall be of a person/s to be approved by the Board of Directors, which approval shall not be unreasonably withheld. (2) Every Preference Shareholder shall give to the Company such sum at such time or times as may be specified by the Board of Directors by way of security deposit and deposits payable to Bombay Municipal Corporation, B.E.S.E., B.E.S.T. or any other body for water, electricity, and similar other amenities and facilities or for any other purposes.
On the Preference Shareholder ceasing to own and to be the registered holder of the Preference Shares mentioned in Article 6(A) herein-above the said deposits shall be transferred to the Purchaser or the Transferee thereof as provided in the next succeeding paragraph, the intention being that the said deposit shall at all times be retained by the Company.
As and when the Preference Shareholder sells or transfers his Preference Shares to any other person, the Preference Shareholder shall make it a condition with the Purchaser or the Transferee that the said deposits shall be assigned to the Purchaser or the Transferee and the Company shall transfer the amount of deposits to the name of the Purchaser or the Transferee after the latter has been approved and accepted as the Transferee of the said Preference Shares by the Board of Directors of the Company.
(3) Possession of the Stipulated Premises for occupation and use as specified herein shall be delivered to the Preference Shareholder only after the said building is ready for use and occupation and provided all the amounts due by the Preference Shareholder shall take possession of the Stipulated Premises within seven days of the Company giving notice in writing to the Preference Shareholder intimating that the Stipulated Premises are ready for use and occupation. The Stipulated Premises shall not be deemed to be ready for use and occupation until inter alia, the occupation certificate is obtained from the Municipal Corporation of Greater Bombay and the necessary arrangements have been made for supply of electricity to the Stipulated Premises.
(4) For the proper management and upkeep of the said land and building, the Board of Directors may appoint a committee (hereinafter referred to as "the Managing Committee") consisting of some of the occupiers of the premises or may approve any such committee elected by the occupiers themselves. The Managing Committee shall function subject to the supervision, directions and instructions issued by the Company and the Board of Directors from time to time. The Board of Directors shall have the power to veto any decision of the Managing Committee.
(5)(a) Commencing a week after the notice given by the Company to the Preference Shareholder that the Stipulated Premises are ready for use and occupation, the Preference Shareholder shall be liable to bear and pay all taxes and charges for electricity, water and other services and the outgoings (hereinafter collectively referred to as "the outgoings") payable in respect of the Stipulated Premises as mentioned below : (i) The expenses of maintaining, repairing, redecorating, etc. of the main structure and in particular the roof, gutters and rain water pipes, gas pipes, electric wires in, upon the building and enjoyed or used by the Preference Shareholder in common with the other occupiers of the other flats and the main entrances, passages, landings and staircase of the building as enjoyed by the Preference Shareholder or used by him in common as aforesaid and the boundary walls of the buildings, compounds, terraces, etc.
(ii) The cost of cleaning and lighting the passages, landing, staircases and other parts of the building so enjoyed or used by the Preference Shareholder in common as aforesaid.
(iv) The costs of the salaries of clerks, bills, collectors, watchmen, sweepers etc.
(v) The costs of working and maintenance of lifts, water pumps and other light and service charges.
(x) Costs of providing other common amenities, benefits and facilities.
(xi) Such other (administrative, legal etc.) expenses and charges as are necessary or incidental for the maintenance and upkeep of the building and running of the Company.
(b) The outgoings mentioned in sub-clause (a) above shall be borne and payable by the difference Preference Shareholders in such proportion and at such time as may be determined by the Board of Directors or by the Managing Committee.
(c) If a Preference Shareholder fails or neglect to pay the outgoings referred to in sub-clause (a), the Company shall have a right to recover the amount of such outgoings directly from any occupant of the Stipulated Premises either out of any moneys which such occupant may be liable to pay to the Preference Shareholder or otherwise. In order to enable the company to recover such amount from such occupant, the Preference Shareholder shall be deemed to have nominated constituted and appointed the Company as his Attorney to recover and receive such amount of outgoings and to give a valid and effectual discharge and receipt for the same, and in default of such payment by such occupant to sue for the same and to file any suits or legal proceedings for effecting such recovery from the occupant. Every occupant shall be entitled to occupy the Stipulated Premises on the express understanding that the respective Preference Shareholder and the occupant are jointly and severally liable for the payment of the outgoings within the specified time.
(d) If any Preference Shareholder or the occupant fails to pay the outgoings within the specified time, he shall be liable to pay compound interest at such rate as may be specified by the Board of Directors or the Managing Committee from time to time.
(e) If any Preference Shareholder fails to pay the outgoings for a period of 6 (six) months, the Board of Directors, at its sole discretion, shall be entitled to forfeit shares (preference and equity, if any), deposits, occupancy, rights and other interest, if any, in the Company and for this purpose the provisions of Regulations 29 to 34 of Table 'A' shall apply as may be appropriate.
From the effective date of the forfeiture, the Preference Shareholder and/or his nominee shall give a vacant possession of the Stipulated Premises to the Company and he shall have no claim against the Company.
(6) The Stipulated Premises shall be used by the Preference Share-holder of his nominee only for residential or commercial purposes stipulated while allotting the Stipulated Premises the same shall not be used in any manner which may or is likely to cause nuisance or annoyance to any of the occupants in the said building or neighbouring premises, or for any illegal or immoral purposes.
(7) Every Preference Shareholder and his nominee shall have in common with the other occupants of the Company's said property permission to use the common portions thereof, such as entrances, passages, stairways and lifts.
(8) A Preference Shareholder and/or his nominee shall from the date of possession maintain the Stipulated Premises at his own cost in a good tenantable repair and shall not do or suffer to be done anything in or to the said building in which the Stipulated Premises are situated or to the Stipulated Premises, staircase, and/or common passages or compound, which may be against the rules, regulations, or by-laws of the Municipal Corporation of Greater Bombay, B.E.S. & T., B.S.E.S. or any other authorities, or any legal bodies. The Preference Shareholder shall be responsible for any violation or breach of any of the aforesaid provisions.
(9) A Preference Shareholder and/or an occupant of the Stipulated Premises shall permit the Company and its surveyor, servants and agents with or without workmen and other persons at all reasonable times to enter into and upon the Stipulated Premises or any part thereof or view and examine the state and conditions thereof. The Preference Shareholder or the occupant shall also permit the Company and its servants and agents and others as aforesaid to enter into the Stipulated Premises or any part thereof also for the purpose of repairing any part to the building in which the Stipulated Premises are situated and for the purpose of making, repairing, maintaining, re-building, cleaning, lighting and keeping in order and good conditions all sewers, drains, pipes, water course, gutters, wires, parapet walls or structures and other conveniences belonging to or serving or served or used for the building in which the Stipulated Premises are situated and also for the purpose of laying, maintaining drainage, gas and water pipes and electric wires maintaining repairing and cables and for similar other purposes contemplated by these Articles.
(10)(a) Without the written approval of the Company, which approval shall not be unreasonably withheld, a Preference Shareholder will not make any alterations to or in the Stipulated Premises and/or any part of the building in which the Stipulated Premises are situated.
A Preference Shareholder shall also not alter the original colour of the outside of the premises or the open varandah of the Stipulated Premises or the facade and front elevation of the building, nor erect sun screens, curtains or blinds on the exterior of the building or its verandahs nor permit the same to be made, fixed, altered or erected whether it is willing to meet the cost of the same or not.
(b) No such consent need be obtained for the carrying out of minor internal repairs furnishing, and interior decoration which do not involve any structural alteration, the fitting of furniture and the like the cost of all of which shall be borne and paid in fully by the Preference Shareholder himself Provided that the decision of the Board of Directors or the Managing Committee of the Company shall be conclusive of the applicability or otherwise of the provisions of this sub-article.
(11) A Preference Shareholder and/or his nominee shall not do or permit to be done any act, deed, matter or thing which may render void or voidable any insurance of the building in which the Stipulated Premises are situated or cause any increased premium to be payable in respect thereof.
(12) A Preference Shareholder and/or his nominee shall not decorate the exterior of the Stipulated Premises otherwise than in the manner agreed to with the Company or in the manner as far as may be in which the same was previously decorated.
(13) If at any time any development and/or betterment charges or other charges are levied or sought to be recovered by the Bombay Municipal Corporation, Government or any other public body or authority in respect of the said land or the building in which the Stipulated Premises are situated, all the Preference Shareholders shall contribute towards the said charges in proportion to the respective floor areas of the Stipulated Premises either by taking additional preference shares or by giving loans, as may be decided by the Company.
(14) Every Preference Shareholder and his nominee shall observe and perform all the bye-laws and all the rules and regulations and the Memorandum and Articles of Association of the Company and shall pay and contribute regularly and punctually towards taxes and expenses and other outgoings in accordance with the terms of these Articles.
(15) If the Company shall get the benefit of additional floor space Index (F.S.I.) for construction from the Bombay Municipal Corporation the Company shall be at liberty to put up any number of additional floors over and above the said building and to dispose of the same as it deems fit.
The Preference Shareholders will not be entitled to any rebate or compensation on account of the construction to the additional floors in the said building and/or change, alteration and additions made in the said building.
(16) The Company and/or its nominee or assigns shall be entitled to display advertisements or hoarding or signboard or neon-signs on any portion of the compound comprised in the said premises including the terrace walls, parapet walls and compound walls and they shall be exclusively entitled to the income that may be derived by display of the said advertisements or hoardings at all times thereafter. The Preference Shareholders shall not be entitled to raise any objection or to claim any compensation or damages on the ground of inconvenience or any other ground whatsoever and the Company shall be entitled to nominate any other person to obtain the benefit of the rights and interest conferred by this clause or to assign such benefit, right and interest in favour of other person. Provided that the Company shall be entitled to charge the said nominee/s or assignee/s such amount by way of maintenance or otherwise in respect of the rights and benefits conferred upon them by this Article, as may be mutually agreed to.
(17) After the possession of the Stipulated Premises is handed over to a Preference Shareholder, if any additions or alterations in or about or relating to the said building in which the premises are situated are required to be carried out by the Government.
Municipality or any statutory authority or body, all the Preference Shareholders shall proportionately contribute towards the cost thereof by taking up additional preference shares or by giving loan to the Company, as may be decided by the Company.
(18) The said Building shall be known as "Babuline Complex" and this name shall not be changed.
(19) If at the time of giving possession of the Stipulated Premises or any Preference Shareholder, all the Preference Shares in the Company are not subscribed to and as a result certain flats/shops/garages/parking spaces have not been given for occupation, the Company shall have the over all control and authority in respect of the said premises and in respect of any of the matters concerning the said premises including all amenities to be provided to the same and the Company shall have the absolute authority and control as regards the Preference Shares which have not been subscribed to and the corresponding premises and the manner and consideration for which the same shall be disposed of.
(20) The Preference shareholder shall bear and be responsible for paying any liability in respect of payment to tax, duty, etc. that may be imposed by the Central Government or the State Government or any local authority or public body or Competent Authority in respect of the Stipulated Premises or the building in which the same is situated or the land upon which the said building is situated including any sales-tax liability that may become payable in future in respect of value of the Stipulated Premises allotted to the Preference Shareholders for occupation and use.
(21) Until all his dues of whatsoever nature owing to the Company are fully paid up, a Preference Shareholder shall not let subject; mortgage, charge or in any way encumber or deal with or dispose of his occupancy rights as specified herein except by way of sale, transfer, or pledge of preference shares.
(22) In case the Preference Shares belonging to a particular preference shareholder are forfeited or sold by the Company either in enforcement of its lien thereon or for any other reason specified herein, the Preference Shareholder shall have no further or other right on the said Preference Shares or the Stipulated Premises or the said deposits, all of which will become the absolute property of the Company and on occurrence of any such event the Company shall have full right and authority to remove from the Stipulated Premises the Preference Shareholder his nominee/nominees, agents, servants or other occupiers of the Stipulated Premises, if they are already in occupation of the Stipulated Premises.
(23) Upon ceasing to be a Preference Shareholder, the Preference Shareholder and his nominee will forthwith and without further notice vacate the Stipulated Premises and that the Company's employee or other representatives shall be fully entitled to enter the same and take full possession thereof, by force if necessary, and without becoming liable to damage or otherwise therefor.
(24) The certificates of Preference Shares to be issued to the Preference Shareholders shall clearly specify and indicate by an appropriate rubber stamp or other device that the shares comprised therein are held subject to the terms and conditions of these Articles." 10. Preference shares are non-participating, but carrying a specific right of occupancy in the flat. Forty-seven shares are in respect of flat No. 18 in the building known as Babuline Complex. On a fair reading of the terms of occupancy rights it is evident that these are proprietary rights. These rights go with the shares and whoever is the registered holder thereof acquire them by virtue of their mere holding them. Though in a case under the Stamps Act, the nature of the shareholding and transaction thereof is stated by the Bombay High Court in the case of Hanuman Vitamins Foods (P.) Ltd. (supra) as under : "In the circumstances, we feel that it would be a travesty of the truth to hold that the document being the instrument of transfer under the heading 'Form of Transfer' purports to transfer only the shares and nothing beyond the shares. We find that in substance and effect in addition to the transfer of shares, the documents also conveys the petitioners right to occupy the office premises ....." 11. The full Bench of the Gujarat High Court in the case of Mulshankar Kunverji Gor v. Juvanshinhji Shivbha Jadeja AIR 1980 Guj. 62 (FB) held that "When a member of the Co-operative Society transfers his share to another with the approval of the society he, not only transfers the shares but also as a necessary incident thereof transfers his interest in the immovable property which has been allotted to him.
12. It is true, as contended by the learned counsel for the assessee, that the shareholding or transfer does not and cannot mean the transfer of immovable property or interest thereof in the light of the Bombay High Court decision in the case of Usha v. Suresh [1990] Mh. LJ. 306, a case under the Registration Act wherein it is held that section 17(1)(b) of the Registration Act exempts registration of transfer of shares because of section 41 of Maharashtra Co-operative Societies Act, but it was because clause (a) of section 41 specifically excludes such shares, notwithstanding that the assets of the society consist in whole or in part of immovable property. It was also similarly observed by the Supreme Court in the case of Ramesh Himmatlal Shah v. Harsukh Jadhavji Joshi AIR 1975 SC 1470 that attachment and sale in such a case is only of the right to occupy the flat and of the right to obtain a transfer of shares.
13. Only a right to occupy a flat flows from the ownership of shares in the Co-operative society. The shares thereby do not become immovable property. The Bombay High Court in the aforesaid case of Usha (supra) did not say that it was not a right in property, but held that "even if the transfer of such interest is construed as transfer of interest in an immovable property, section 41 of Maharashtra Co-operative Societies Act exempts the document effecting transfer of such shares from the ambit of section 17(1)(b) of the Registration Act.
14. The fact, however, remains that it is not a transfer of shares simpliciter, but a transfer of occupancy right which flows from the ownership of the shares. Such shares are non-participating and 2 per cent non-cumulative dividend is, as held by the Assessing Officer, to be a farce, as there is no activity of profit carried on by the assessee except the construction of flats allotted to the preference shareholders, which is, in effect, a transfer of occupancy rights and nothing else.
15. In the Bombay High Court decisions in the case of Shree Nirmal Commercial Ltd. v. CIT [1992] 193 ITR 694 and CIT v. Shree Nirmal Commercial Ltd. [1995] 213 ITR 361 (FB) the non-refundable deposits entitling or carrying occupancy rights and right of allotment of flats, were held to be, in fact, sale of flats by the company. Here also the preference shares are irredeemable.
16. What is a share It is not defined under the IT Act. Section 2(46) of the Companies Act, 1956, defines 'share' to mean a share in the share-capital of a company and includes stock except where a distinction between stock and share is expressed or implied. The Supreme Court observed in CIT v. Standard Vaccum Oil Co. [1966] 59 ITR 685 that by a share in a company is meant not any sum of money, but an interest measured by a sum of money and or of diverse rights acquired on its holder by the articles of the company, which constitute a contract between him and the company. The share represents the assessee's interest in the company and the right to share the income, if declared. By itself it has no proprietary right. It is not a denominative of one's right in some tangible and existing property, but an interest to participation in the assets of the company on its liquidation and right to share the income if declared as dividend. In that sense the impugned shares held by the assessee are nothing but occupancy right and, therefore, the transfer of shares is also nothing but a transfer of occupancy right. This may, however, be not misunderstood that in that case the Explanation to section 2(42A) of the Act can never apply to any shares held by an assessee. It would apply to the shares as understood in the common parlance. However, as stated above, the preference shares held by the assessee in this case are not the shares as understood in the normal sense, which carry right of participation in assets on dissolution and profit on declaration.
But, as stated above, these shares carry right of occupancy on allotment itself and, therefore, these are not the shares simpliciter, but denominative of existing right of occupancy.
17. The assessee raised an argument that no flats were in existence when the assessee transferred the preference shares and, therefore, the transfer of shares should not be construed as transfer of any capital asset or interest in an immovable property by importing the meaning given in section 27 or 269UA(d) of the Act. Both these sections include the right even in a property to be constructed and do not restrict to such rights in any existing property. Capital gains arise on transfer of capital assets and section 2(47) includes in its ambit any transaction (whether by way of becoming a member of, or acquiring shares in, a co-operative society, company or other association of persons or by way of any agreement or any arrangement or in any other manner whatsoever) which has the effect of transferring, or enabling the enjoyment of any 'immovable property.' For this purpose, the term 'immovable property' has been assigned the same meaning as B is given under section 269UA(d) of the Act. Therefore, to say that the meaning given under section 27 or section 269UA(d) is given for a particular purpose and should not be imported in construing the other provision has no force, because the Explanation to section 2(47) itself incorporates that meaning in its ambit. In any case, as held by the Supreme Court in CIT v. Podar Cement (P.) Ltd. [1997] 226 ITR 625/92 Taxman 541, the definition given in section 27 is declaratory/clarificatory in nature and is within the natural import of its term.
18. In the circumstances mentioned above, the order of the Commissioner (A) disagreeing with the Assessing Officer's view that what the assessee transferred was not the shares but right of occupancy over a house property could not be upheld. The transaction was no transfer of shares simpliciter, but that of occupancy rights and, therefore, the benefit available under the Explanation to section 2(42A) cannot be granted to the assessee. His order is accordingly reversed and that of the Assessing Officer is restored.