Law: Income Tax Act, 1922

Section: 66

Section 142 read with section 155 of the Income-tax Act, 1961 [Corresponding to section 34(1)(a), read with section 35(5) of the Indian Income-tax Act, 1922] - Income escaping assessment - Non-disclosure of primary facts - Assessment years 1944-45 to 1947-48 - Assessee was a partner in a firm - For previous year relevant to assessment year in question proceedings under section 34 of 1922 Act for reassessment of firm was initiated - ITO completed assessment of firm - However, assessee did not include his share income from firm though he disclosed fact that he was a partner having a half share in that firm and intimated to ITO, that he might ascertain correct share income includible in his total income from ITO and assess him suitably - Assessee's ITO accordingly got information from previous ITO regarding assessee's share of firm's income and assessed assessee - Assessee suspecting bona fide of lease filed a suit whenever it was held that said lease was not a bona fide lease - As a result of above litigation, ITO issued notice under section 34(1)(a) of 1922 Act to assessee and made reassessment - Assessee challenged validity of notice - Whether since assessee had done all that he need or could do and there was not an iota of evidence to charge him with non-disclosure of material facts in terms of section 34(1)(a) of 1922 Act, proceedings under section 34 of 1922 Act were not valid - Held, yes FACTS The assessee and one 'K' were partners of an unregistered firm. Each of them had a half share in the said business. For the previous years relevant to the assessment years in question the firm returned as its income only rents said to have been derived by the leasing of the factory purchased by assessee's father to one 'P'. The assessments on the firm for these years were completed by the ITO, on the basis of rental income from 'P' but treating the firm as a registered firm under section 23(5)(b) of 1922 Act. In respect of these years, the assessee did not include his share income from the firm though he disclosed the fact that he was a partner having a half share in that firm. He intimated to the ITO, who was in charge of his assessments, that he may ascertain the…

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