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2007] 294 ITR 302 [2008] 169 TAXMAN 168 (CAL.) HIGH COURT OF CALCUTTA Mohan Singh Oberoiï‚ ï-ª v. Income-tax Officer ASHIM KUMAR BANERJEE AND TAPAS KUMAR GIRI, JJ. F.M.A. NO. 1720 OF 1997 AND 2909 OF 2002 AUGUST 10, 2007 Section 2(24) of the Income-tax Act, 1961 - Income - Definition of - Whether benefit derived by assessee out of interest free loans granted by two companies to her husband could be said to be her income - Held, no FACTS After completion of the assessment of the assessee, the Assessing Officer found that the assessee derived benefit out of interest-free loans granted by two companies to her husband. The Assessing Officer was of the view that such benefit was to be treated as assessee's income and should have been reflected in the return, and by not showing such income in the tax return, the assessee escaped from assessment of such income. Accordingly, the Assessing Officer issued notice under section 148 for reopening the assessment. Against that, the assessee filed writ petition which was dismissed by the Single Judge. On appeal : HELD The notices in question had been issued presumably to rope in the assessee under section 2(24)(iv). The Division Bench, in CIT v. P.R.S. Oberoi [1990] 183 ITR 103/ 51 Taxman 355 (Cal.), had held that the interest-free loan could not be said to be 'income'. Such finding was noted with approval by the Supreme Court in V.M. Salgaocar & Brothers (P.) Ltd.v. CIT [2000] 243 ITR 383/110 Taxman 67 (Cal.) and reiterated by the High Court in Ishran Devi Oberoi v. ITO [2001]250 ITR 362/[2002] 120 Taxman 461 (Cal.). In view of the said decisions, there was no scope of disagreement on that score. Hence the impugned notice was liable to be quashed and set aside. [Paras 11 and 12] CASE REVIEW CIT v. P.R.S. Oberoi [1990] 183 ITR 103/ 51 Taxman 355 (Cal.), V.M. Salgaocar & Brothers (P.) Ltd. v. CIT [2000]243 ITR 383/110 Taxman 67 (SC), Ishran Devi Oberoi v. ITO [2001] 250 ITR 362/[2002] 120 Taxman 461 (Cal.) -followed. CASES REFERRED TO CIT v. P.R.S. Oberoi [1990] 183 ITR 103/ 51 Taxman 355 (Cal.) [Para 5], V.M. Salgaocar & Bros. (P.) Ltd. v. CIT[2000] 243 ITR 383/110 Taxman 67 (SC) [Para 5], Ishran Devi Oberoi…

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