Law:

Section:

1Section 147 of the Income-tax Act, 1961 [Corresponding to section 34(1)(b) of the Indian Income-tax Act, 1922] - Income escaping assessment - Position prior to 1-4-1989 - Assessment year 1956-57 - Whether where questions arising out of Tribunal's order was one about validity of initiation of proceeding under section 34(1)(b) of 1922 Act, High Court was bound to decide all aspects of that question raised before them, before recording an answer and if they did not, Tribunal would be powerless to enter upon an enquiry of any other aspect of question offer answer to question is recorded by High Court - Held, yes - Whether it could be said that because a particular aspect of question of law raised was not specifically argued before Tribunal, High Court cannot deal with that aspect - Held, no (Matter remanded) FACTS Pursuant to ITO's orders under section 23A of the 1922 Act, the assessee-company distributed dividend to the shareholders, the ITO completed the assessment of the assessee for the year 1956-57 by computing the super-tax payable by it under the Finance Act, 1956, at the rate of six annas and nine pies in the rupee of the total income, and granted a rebate at the rate of four annas in the rupee in accordance with the provisions of clause D, provisos (i)( b) and (ii) of the Schedule to that Act. Thereafter the ITO, being of the opinion that excessive relief had been granted to the assessee within the meaning of section 34(1)(b) 1922 Act, issued a notice on for reopening the assessment. The assessee filed its return of income in compliance with the notice and contended that the proceedings commenced by the ITO were unauthorised, because the income of the company had not been the subject of 'excessive relief' within the meaning of section 34(1)(b) of 1922 Act, and that actual distribution of dividends already deemed to have been distributed in accordance with the orders passed under section 23A 1922 Act could not be taken into consideration for the purpose of reducing the rebate of super-tax admissible under the proviso 2 to Paragraph D of the Finance Act, 1956. The ITO rejected the assessee's contentions and ordered that the rebate of super-tax to the extent…

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