Law: Income Tax Act, 1961

Section: 263

Income-tax----Revision---Jurisdiction to revise assessment order ---CIT cannot set aside assessment: order on the ground that verification of accounts was needed -CIT accepting explanation of assessee---Assessment order was not erroneous---Order of revision was not valid---Indian Income Tax Act. 1961, S.263. The assessee was carrying on money-lending business. For the assessment year 1974-75, the Income-tax Officer determined the assessee s total income at Rs.59,050 by his order, dated September 30, 1976. Later, the Commissioner of Income-tax (Administration) called for the records and scrutinised the order alongwith the connected records in the case of D Films. On such scrutiny, he noticed that the said D Films owed a sum of rupees one lakh to the assessee as disclosed in the details given by it, but the assessee had not disclosed this amount in her balance-sheet. The Commissioner of Income-tax held that the order passed by the Income-tax Officer, without verifying this investment, was erroneous in so far as it was prejudicial to the interests of the Revenue. The Commissioner of Income-tax issued a notice under section 263 of the Income Tax Act, 1961, to the assessee requiring her to show cause as to why this sum of rupees one lakh should not be treated as her undisclosed income. Before the Commissioner of Income-tax, the assessee submitted that the sum of rupees one lakh was advanced to D Films, Coimbatore, on January 7, .1974, for the purpose of purchasing the lease right of the film "Velikizhamai Viradham"; that before the production of the film, the assessee sold her lease rights to Fathima Trust, Madras 34, for a sum of Rs.1.30 lakhs, that the said Fathima Trust paid a sum of Rs.25,000 and the remaining unpaid amount of Rs.1.05 lakhs appeared in the assessees balance-sheet, as on January 31, 1974, and that, therefore, there was nothing due from the said D Films. On considering the explanation offered by the assessee, the Commissioner of Income-tax felt that as the sum of rupees one lakh. had been shown as a debt owed by the said D Films, the Income-tax Officer should be directed to make a fresh assessment after obtaining necessary clarification from 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