Law:

Section:

Section 149, read with section 148, of the Income-tax Act, 1961 – Income escaping assessment – Time-limit for issuance of notice – Assessment years 1965-66, 1966-67 and 1969-70 – Whether limitation prescribed under section 149 is with reference to issuance of notice under section 148 and not service of notice - Held, yes – Whether when something which had not presented itself to mind of ITO at time of original assessment came to be so presented to his mind after completion of assessment reopening of such cases would fall under section 147(b) and limitation for issuance of notice would be four years from end of relevant assessment year - Held, yes – Whether where assessee was entitled to raise question of non-existence of reasons for belief for re-opening assessments under section 147 before assessing authority, AAC and Tribunal, it could not be gone into by High Court in writ proceedings - Held, yes FACTS In the balance-sheets submitted along with the returns for the assessment years 1965-66, 1966-67 and 1969-70 certain amounts were shown as received on account of charity. The ITO completed the assessments but did not make addition of the amounts received on account of charity to the income returned. He did not question the correctness of the figures either. Subsequently, on 28-3-1974, the ITO issued three notices under section 148 stating that he had reasons to believe that the income chargeable to tax for the three assessment years in question had escaped assessment within the meaning or section 147. Said notices were served on the assessee on 2-4-1974. The assessee objected to the validity of the notices and demanded the disclosure of the reasons on which the ITO grounded his belief that income chargeable to tax had escaped assessment. However, receiving no reply, the assessee filed the instant writ petition. HELD As per statement filed by the revenue, reasons recorded by the ITO were that the assessee failed to disclose the amount of charity charged from the customers which was its income and, therefore, he had reasons to believe that by reason of the assessee's failure to disclose fully and truly the particulars of income, income had escaped assessment for…

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