Law:

Section:

Section 263 of the Income-tax Act, 1961 (corresponding to section 33B of the Indian Income-tax Act, 1922) - Revision - Of order prejudicial to interest of revenue - Assessment year 1959-60 - Whether while passing order under section 33B, Commissioner must give his own reasons for being satisfied that the order passed by the ITO was prejudicial to interest of revenue - Held, yes - Whether, therefore, in instant case, Commissioner was not justified in passing an order under section 33B relying solely on very order of AAC for purposes of holding that order of ITO was erroneous in so far as it was prejudicial to interest of revenue - Held, yes - Whether under section 33B proceedings can be taken against legal heirs of a deceased assessee provided notice of same is issued to person liable to pay tax on behalf of deceased - Held, yes FACTS The assessee, had filed a return for the assessment year 1959-60. The assessee claimed that a sum of Rs. 1.02 lakhs, received by him on retirement from the firm 'R' was not includible in his income. The assessee died on 11-2-1961. But the ITO completed the Assessment on 6-2-1964. The ITO did not include the amount of Rs. 1.02 lakhs in the income of that year on the ground that it was received in April 1959, and as such was to be considered in the assessment year 1960-61 only. The ITO thereafter, assessed this amount as capital gain in the assessment year 1960-61. AAC deleted the addition on the ground that the amount was assessable as capital gain in the assessment year 1959-60 and not in the assessment year 1960-61. The Commissioner being of the view that the order of the ITO for the year 1959-60 was prejudicial to the interest of the revenue, issued a notice under section 33B to the legal heir of the deceased assessee, to show cause why action under section 33B should not be taken. The Commissioner thereupon passed an order in which assessment made by the ITO was set aside and he was directed to make a fresh assessment in accordance with law. The order of the Commissioner was challenged by the assessee before the Tribunal. The Tribunal negatived the contention that the order under section 33B was invalid as it was passed against…

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