Law:

Section:

Section 149, read with section 147 of the Income-tax Act, 1961 - Income escaping assessment - Time limit for completion of reassessment - ITO issued notices to assessee on ground that income amounting to Rs. 2,54,740 had escaped assessment for five assessment years in question implying thereby that more than Rs. 50,000 escaped assessment for each year - Whether where notice for reassessment was issued after eight years after close of latest of assessment years, section 149 was attracted and reassessment proceedings could be commenced only if ITO had reason to believe that income chargeable to tax which had escaped assessment amounted or was likely to amount to rupees fifty thousand or more for that year - Held, yes - Whether where money expended for purchase of lands and other property form years 1946 to 1948, both inclusive, had been taken into account in reaching figure of escaped income, and out of this, certain, sums pertained to purchase or acquisition of other property before accounting year 1949, these were completely extraneous and irrelevant considerations and could never from basis of any material which could supply information to formulate reasonable belief - Held, yes - Whether since if above sums as also amount of capital gain earned by assessee by sale of property in 1947, were omitted from total income having escaped assessment, escaped income would be less than Rs. 50,000 for each year, hence, requirements of section 147(a), read with section 149 had not been satisfied, and Income-tax Officer had no jurisdiction to initiate reassessment proceedings - Held, yes - Whether, as a consequence, assessment orders following reassessment proceedings had also to be quashed - Held, yes FACTS For the assessment years 1950-51 to 1954-55, the ITO having reason to believe that the income amounting to more than Rs. 50,000 had escaped assessment in each of those years, reopened the assessments under section 147(a) and issued notices for reassessment. On writ, the Single Judge referred the matter to Division Bench in view of the question whether a remedy by an application under Article 226 of the Constitution would be available to an assessee in regard to notices…

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