Law: Income Tax Act, 1961

Section: 147,148,263

Income-tax----Revision---Reassessment---Notice issued for reassessment under S.147/148, Indian Income Tax Act, 1961---Jurisdiction of Commissioner of Income-tax to revise order of assessment is not taken away---Indian Income tax Act, 1961, Ss. 147, 148 & 263. The operation of sections 147 and 263 of the Income Tax Act, 1961, is somewhat similar and it is the Income-tax Officer who under sections 147 and 148 of the Act can reopen the assessment on account of the income escaping assessment. As against this if the Commissioner under section 263 of the Act finds that the assessment order is prejudicial to the interests of the Revenue, then he can reopen the issue. Therefore, virtually, both these provisions are for reopening the assessment---one at the Income-tax Officer level and other, at the level of the Commissioner. Both can invoke their power after the assessment order, but both are not exclusive of each other. Under sections 147 and 148 of the Act, the order of assessment is not wiped out nor does it become non est. The order survives to a limited extent and is not wholly wiped out. It will remain in suspended animation till it is finally decided by the Income-tax Officer. On the issuance of notice under sections 147 and 148 of the Act by the Income-tax Officer the power under section 263 of the Act of the Commissioner is not denuded and both the provisions can exist without there being any conflict in the matter. CIT v. Sun Engineering Works P. Ltd. (1992) 198 ITR 297 (SC) and Sharda Trading Co. v. CIT (1984) 149 ITR 19 (Delhi) fol. General Beopar Co. (Pvt.) Ltd. v. CIT (1987) 167 ITR 86 (Cal.); Jaganmohan Rao (V.) v. CIT/CEPT (1970) 75 ITR 373 (SC); Jawajirao Sugar Co. Ltd. v. CIT (1989) 176 ITR 182 (MP) and Madhav Rao Jivaji Rao Scindia Bahadur v. Union of India (1971) 3 SCR 9 and AIR 1971 SC 530 ref. JUDGMENT A.K. MATHUR, C. J.---All the aforesaid reference cases involve common questions of law and facts and, therefore, they are disposed of by this common judgment. For convenient disposal of all the aforesaid references, the facts given in CIT v. Gulam Rasool (M.C.C. No.546 of 1992) are taken into consideration. This is an income-tax reference at the…

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