Law:

Section:

Section 147, read with section 41(2) of the Income-tax Act, 1961 (Corresponding to section 34(1)(a), read with section 10(2)(vii) of Indian Income-tax Act, 1922) - Income escaping assessment - Position prior to 1-4-1989 - Assessment Year 1952-53- Assessee-company sold its assets at a price higher than their written down value - It, however, did not include profits so earned in its return of income-Assessee even did not disclose written down value of assets sold in return or in any other document submitted - ITO after having completed assessment opined that profits deemed to have been earned by assessee under section 10(2)(vii) of 1922 Act escaped assessment - He, accordingly, initiated reassessment proceedings under section 34(1)(a) of 1922 Act - Tribunal, however, set aside reassessment proceedings holding that assessee had placed before ITO all primary facts necessary for its assessment - High Court set aside Tribunal's order - Whether question as to whether assessee had failed to disclose all material facts could not be decided without first deciding whether part of sale price received by assessee amounted to profits under section 10(2)(viii) of 1922 Act - Held, yes - Whether, therefore, matter was to be remanded to Tribunal to firstly decide question as to whether there was any profits falling within section 10(2)(vii) of 1922 Act - Held, yes [Matter remanded] FACTS During the assessment proceeding for the relevant assessment year, the assessee sold all its assets at price which was much more than their written down value. The assessee informed the ITO about the sale but did not show in its return any profits under section 10(2)(vii) of the 1922 Act nor did it show the price received in excess of the written down value of the assets sold in Part I of section D of the return. Some time later the ITO, finding out that the profits deemed to have been earned by the assessee-company under section 10(2)(vii) of 1922 Act had not been assessed, commenced proceedings under section 34(1)(a) of the 1922 Act and reassessed the assessee. In appeal the AAC concurred with the view taken by the ITO. On second appeal, the Tribunal did not go into the question whether any…

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