Law:

Section:

Section 147, read with section 148, of the Income-tax Act, 1961 - Income escaping assessment - Information - Position prior to 1-4-1989 - Assessment year 1958-59 - Whether there is no statutory obligation on ITO to give any intimation to assessee either before issuing notice or at time of issuing notice as to what part of income of assessee has escaped assessment or what is information in his possession in consequence of which he has reason to believe that such escapement has taken place - Held, yes - ITO found as result of information received by him from Assessar and Collector of Municipal Taxes that entire basis on which annual value of immovable property owned by assessee was arrived at by previous ITO was wrong inasmuch as rateable value fixed by Municipal Corporation was not on basis of hypothetical rent which said immovable property would fetch from year to year but was on concessional basis - On basis of said information, ITO found that assessee's income from said immovable property had escaped assessment and, therefore, he issued notice to assessee under section 147(b) - Whether intimation received by ITO from Assessor and collector of Municipal Taxes was information within meaning of section 147(b) - Held, yes - Whether, therefore, notice under section 147(b) was valid notice - Held, yes FACTS The petitioner assessee was owing an immovable property. The annual value of the said immovable property was returned by the petitioner on the basis of the rateable value fixed by the Municipal Corporation and the ITO accepted the same believing that it represented the correct annual value of the said immovable property. In or about 1962, however, on making detailed inquiries, the successor ITO came to know from the Assessor and Collector of Municipal Taxes that though according to the principles of rating, assessment of a property should be made by the Municipal Corporation on the basis of rent that a hypothetical tenant would pay if the property is let out from year to year, the Municipal Corporation did not strictly adhere to that principle in practice and in respect of properties occupied by owners, the Municipal Corporation had made concessional assessment…

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