Law:

Section:

Section 155 of the Income-tax Act, 1961 [Corresponding to section 35(6) of the Indian Income-tax Act, 1922] - Rectification of mistakes - Other amendments - Assessment years 1944-45 to 1946-47 - Whether it is open to income-tax authorities to take action under section 35(6) of 1922 Act even in case where assessment of income tax had been completed before 1-4-1952 - Held, yes - ITO passed orders on 18-5-1956 under 35(6) of 1922 Act for reassessment of income-tax after Tribunal excluded certain income from excess profits tax assessments for relevant assessment years - Assessee's objection that since initial assessment was done in year 1947, assessment could not be revised under section 35(6) of 1922 Act, was overruled by respondent ITO - Whether respondent was right in overruling objection raised by assessee - Held, yes FACTS The petitioner assessee derived income from his share in a firm and also by way of remuneration one-fourth share in net profits of a certain retail shop for managing that shop. Initially income-tax was assessed on the footing that the petitioner's one-fourth share in net profits of the retail shop constituted income from business, and he was subjected to excess profits tax under the Excess Profits Tax Act, 1940. On that basis, an order was passed on 22-2-1947, assessing the petitioner to income for three separate assessment years. The petitioner contested his liability to pay excess profits tax. That matter was referred to the High Court and that reference was answered by the High Court in favour of the petitioner. In view of that decision, the Tribunal excluded that income from excess profits tax assessments for those years. As a consequence of that proceeding, the ITO passed three separate orders on 18-5-1956, for reassessment of income-tax for those three years. The order dated 18-5-1956, resulted in enhancement of the income-tax. The petitioner filed an objection protesting against the alleged rectification of the assessment that the initial assessment was done in the year 1947, the assessment therefore could not be revised under sub-section (6) of section 35(6) of the 1922 Act. That objection was rejected by the ITO. The appeal filed by…

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