Law: Income Tax Act, 1961

Section: 147

Income-tax----Reassessment---Assessment---Effect of reassessment---Entire order of assessment is not set aside ---I.T.O.s jurisdiction is confined to income which has escaped tax or has been under-assessed---Indian Income Tax Act, 1961, S.147. The Supreme Court has laid down in CIT v. Sun Engineering Works (P.) Ltd. (1992) IP8 ITR 297, that the Income-tax Officers jurisdiction under section 147 of the Income Tax Act, 1961, is confined to such, income which has escaped tax or has been under-assessed and does not extend to revising, reopening or reconsidering the whole assessment or permitting the assessee to reagitate the question which had been decided in the original assessment proceedings. It is further observed in the context that it is only the under-assessment that gets set aide and not the entire assessment when reassessment proceedings are initiated. The Supreme Court held that the words "such income" clearly mean income which is clearly chargeable to tax but has escaped assessment. CIT v. Sun Engineering Works (P.) Ltd. (1992) 198 ITR 297 (SC) explained. CIT v. Onkar Saran & Sons (1992) 195 ITR 1 (SC) and Jaganmohan Rap (V.) v. CITICEPT (1970) 75 ITR 373 (SC) ref. JUDGMENT V. V. KAMAT, J.---The following two questions expect our answer; "(1) Whether; on the facts and in the circumstances of the case, the Tribunal is right in law in holding that once reassessment proceedings have resulted in reassessment of the income of the assessee, the original assessment order can no longer survive? (2) Whether, on the facts and in the circumstances of the case and in the light of the observation of the Supreme Court in CIT v. Onkar Saran & Sons (1992) 195 ITR 1 (at page 8), it is only the determination of the correct total income for the assessment year in question that is being redone and in the light of the first illustration (at page 8) resulting in the conclusion, that certainly cannot be the effect of the legal provisions, are not the order of the Tribunal and the decisions of .the Kerala and Bombay High Courts, relied on, against the decision of the Supreme Court in CIT v. Onkar Saran & Sons (1992) 195 ITR 1?" The Income-tax Appellate Tribunal,…

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