Law:

Section:

Section 147 of Income-tax Act, 1961 - Income escaping assessment - Information - Position prior to 1-4-1989 - Assessment years 1959-60 and 1960-61 - In original assessment ITO allowed expenses claimed by assessee - Subsequently, ITO was succeeded by another officer who issued notice under section 147(b) for both assessment years and held that expenses were not admissible - Whether since no appellate or higher authority had taken view that those expenses were not admissible, conclusion reached as result of fresh application of mind by successor officer would not amount to information within meaning of section 147(b) - Held, yes FACTS The assessee company went into liquidation in 1949. For the assessment years in question, the liquidator filed return of income showing interest received. As against this income the liquidator claimed expenses in respect of salary, postage, traveling, etc. The ITO made the assessment under section 23(3) and accepted the claim of the liquidator. Subsequently, the ITO was succeeded by another officer who issued notice under section 147(b) for both the assessment years and held that the expenses were not admissible. The assessee went up in appeal but failed. The Tribunal held that, on facts, it had not been established by the department that the ITO who made the original assessment did not apply his mind to the admissibility of the expenses. The mere fact that the ITO did not discuss the details of the evidence would not show that he did not apply his mind to the question of admissibility of expenses. It was also found that the claim for expenses as well as the income were apparent and it could not be said that the same was discovered by the successor ITO subsequently because some material evidence came to his notice later on as the requisite facts were already in the possession of the ITO when he completed the original assessment. On these findings, the Tribunal came to the conclusion that it was merely a case of change of opinion by the successor officer and as such action under section 147(b) was not legally valid. On reference : HELD The findings of fact that all requisite facts were known to the ITO who made the original…

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