Law:

Section:

Section 147, read with section 148, of the Income-tax Act, 1961 - Income escaping assessment - Illustrations - Assessment years 1959-60 to 1961-62 - Whether what an assessee is required to disclose during course of an assessment is primary and basic facts relating to assessment of his income; he is not required to disclose what would be a legitimate inference which could be drawn from these primary or basic facts - Held, yes - Assessee, a partnership firm, consisted of 4 partners who were inter related as brothers - Upto 23-10-1957, assessee had a branch at Bangalore and income earned therefrom was included in income of assessee - However, on 24-10-1957, business of assessee at Bangalore was taken over by a separate and independent firm consisting of major and minor sons of partners of assessee-firm - For relevant assessment years, assessment of assessee's income was completed on basis that income earned by Bangalore firm was an income earned by a separate and independent entity and should, therefore, not be clubbed with income earned by assessee - Thereafter, on basis of information received from ITO of Bangalore firm that Tribunal had refused registration of Bangalore firm on ground that Bangalore firm was not an independent firm, concerned ITO issued notice upon assessee under section 148 proposing to reopen its assessment - However, it was found that assessee had disclosed during course of assessment that separate entity of Bangalore firm was disputed by department and had produced copies of orders passed by ITO as well as AAC with regard to assessment of Bangalore firm which had ultimately led Tribunal to a finding that Bangalore firm was merely a branch of assessee-firm - Whether since copies of said orders passed by ITO and AAC were already before concerned ITO, assessee-firm could not be said to have failed to disclose fully and truly all materials necessary for its assessment for relevant period - Held, yes - Whether, therefore, it could not be said that escapement of income, if any, was on account of non-disclosure by assessee and, as such, impugned notice was liable to quashed and set aside - Held, yes FACTS The assessee was a partnership firm…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492