Law: Income Tax Act, 1961

Section: 148,138(2),143(3),147,69

Section 147(a), read with sections 69 and 69B, of the Income-tax Act, 1961 - Unexplained investment - Assessment year 1980-81 - During assessment year 1980-81 assessee-firm started construction of cold storage plant and did not File return as it had no income - Assessment was completed at nil income with remark that as construction was completed in assessment year 1981-82, same would be considered in that year - During assessment for assessment year 1981-82, it was found that there was difference between valuation reports submitted by assessee and that obtained by department - Holding that such difference was assessable in assessment year 1980-81 under section 69, reassessment notice was issued under section 147(a) for assessment year 1980-81 - Assessee challenged said notice by filing writ petition - Whether all questions of law could be gone into in reassessment proceedings and as such, writ was to be dismissed - Held, yes FACTS During the year 1979 (assessment year 1980-81), the assessee-firm commenced construction and installation of a cold storage plant. The construction went on till March 1980. During the year 1979, the assessee-firm did not have any income; only investment in setting up of the plant. For that reason, the assessee-firm did not file a return for the assessment year 1980-81. The return for the assessment year 1981 -82 was filed on 14-9-1981, in response to a notice under section 139(2). Thereafter on 16-10-1981, the assessee also filed a nil return for the assessment year 1980-81. On 15-2-1983 in the assessment order for the assessment year 1980-81 passed under section 143(3) the Assistant Commissioner observed that since the construction of the cold storage plant was completed during the previous year relevant to the assessment year 1981-82, the said investment will be considered in that year. The nil income return was accordingly accepted. For the assessment year 1981-82, the assessment was completed under section 143(3) on 17-3-1986.- The Assistant Commissioner observed that during the assessment proceedings for the assessment year the assessee had submitted a valuation report, prepared by an approved valuer, showing that the…

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