COMMISSIONER OF INCOME-TAX VS THANTHI TRUST
1996 P T D 922
[217 I T R 198]
[Supreme Court of India]
Present: A. M. Ahmadi C. J.-L, S. P. Bharucha and K. S. Paripoornan, JJ
COMMISSIONER OF INCOME-TAX
Versus
THANTHI TRUST
Tax Reference Case No. 13 of 1982, decided on 20/04/1995.
(a) Income-tax---
----Reassessment---Failure to disclose material facts necessary for assessment- Information that income has escaped assessment---Distinction between items falling under section 147(a) and 147(b)---Indian Income-tax Act, 1961, S. 147.
(b) Income-tax---
----Reassessment---Failure to disclose material facts necessary for assessment Information that income has escaped assessment---Limitation---Items barred under S.147(b) cannot be reassessed under S.147(a)---Indian Income Tax Act 1961, S. 147.
On a direct reference to the Supreme Court under section 257 of the Income Tax Act, 1961, of the question whether the Tribunal was justified m la` in-holding that the reassessment under section 147(a) of the Income Tax Act 1961, cannot include items already barred under section 147(b) of the Act are, accordingly in deleting the six additions made in the reassessment for the assessment year 1959-60; and whether the Tribunal was justified in drawing a distinction between items falling under sections 147(a) and 147(b) and in deleting the items of additions that could be brought under section. 147(b) of the Income Tax Act, 1961, the Supreme Court on a concession by the Revenue, affirmed the view of the Tribunal.
ITO v. Mewalal Dwarka Prasad (1989) 176 ITR 529 (SC) fol.
J. Ramamurthi, Senior Advocate (Ms. A. Subhashini, Advocate with him) for Appellant.
S.K. Agarwal and vinay Vaish, Advocates for Respondent.
JUDGMENT
This is a direct reference under section 257 of the income Tax Act, 1961. The two questions which are referred for our decision read as under:
(1)Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is justified in law in holding the reassessment under section 147(a) of the Income Tax Act, 1961, cannot include items already barred under section 147(b) of the Income Tax Act, 1961 and in deleting the six additions made in the reassessment for accordingly the assessment year 1959-60?
(2) Whether, on the facts and in the circumstances of the case the Appellate Tribunal is justified in drawing a distinction between items falling under sections 147(a) and 147(b) and in deleting the items of additions that could be brought under section 147(b) of the income Tax Act, 1961?"
Having heard counsel and having noticed the facts, counsel for the Revenue fairly concedes that on the facts as established, both the questions must be answered in favour of the assessee and against the Revenue quite apart from the fact that they are so answered in the decision of this Court as costs. Mewalal Dwarka Prasad (1989) 176 ITR 529. In view of the above me answer both the questions in the affirmative, i.e., against the Revenue and dispose of the reference accordingly with no order as to costs.
Order accordingly.
M.B.A./ 1100/F.C.