Law: Income Tax Act, 1961

Section: 147,147(b)

Income-tax----Reassessment---Limitation---Failure to disclose material facts--­Assessment reopened on basis of law declared by Court---Not a case of failure to disclose material facts---Reassessment could be only under S.147(b)---Barred by limitation---Indian Income Tax Act, 1961, S.147. Where the Tribunal found that the reasons recorded by the Income-­tax Officer for reopening the assessment disclosed that the Income-tax Officer entertained the belief as to escapement of income chargeable to tax from assessment on account of information received by him in the form of a of the Court declaring the state of law about the includibility of the share that is to be received by a beneficiary from the estate left by a deceased: Held, that the belief as to escapement of income chargeable to tax from assessment was not entertained by the Assessing Officer, on the ground that there had been failure on the part of the assessee to disclose truly and fully all material facts necessary for the assessment. Therefore, no proceedings could have been initiated under section 148 of the Income Tax Act, 1961, beyond the expiry of four years from the end of relevant assessment year. As the case squarely fell under section 147(b) and not under section 147(a), the Tribunal was right in reaching its conclusion that the initiation of reassessment proceedings in the case of the assessee for the two assessment years under section 147(b) was barred by time. The Court observed that since the decision of the Court in question had been reversed by the Supreme Court, the question about the validity of the reassessment prima facie became academic. CIT v. Navnit Lal Sakarlal (1980) 125 ITR 67 (Guj.) and Navnit Lal Sakarlal v. CIT (1992) 193 ITR 16 (SC) ref. THIS JUDGMENT DELIVERED BY: The following question of law has been referred by the Income-tax Appellate Tribunal, Ahmedabad, for the opinion of this Court arising out of its appellate order in Income-tax Application No. 1208/Ahd. of 1980 relating 1967-68 and 1968-69: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in coming to the conclusion that the Income-tax Officer was not entitled to reopen 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