The Commissioner Of Income Tax vs Rinku Chakraborthy on 6 January, 2011

[Cites 0, Cited by 23]

Karnataka High Court

The Commissioner Of Income Tax vs Rinku Chakraborthy on 6 January, 2011

Bench: N.Kumar, Ravi Malimath

IN THE HIGH COURT OF KARNATAKA AT 

I.)a't:ed 't..h.i.::-3 the 8"' day :)fJa:11L1:dry,  vi'   _

¥3I3ZEISI§}\_.§'§T.. 

THE HON'BLE MR. JU$'1"fICE N * V
THE HONKBLE M3. JU'S'1'InCE \RAVI MALIMATH
I'_£'A  No} 2&9';  of.  
 'V IT}; ;\1%q.""27$'2, or 2005

_ V *:iA:;TA'Na'o; 2%z§17""'o£'2005 &
V  »  .. _ ' 'I'1fA~ 2798 of 2005

ITA N0. 2';<81%% c_>£'2;Q65' ~ .'

   R.VB1._1E§di_11g, Quetrns Road

'1E'~I%i'e C@mn1issi0'1"1er of Income Tax
' gal 

  I)f:;§TuEy Comrmssioner
' G1' .Lr1s:é0m::: 'Fa.x, Cen¥;.ra..l Ci}"C§ff~ M1)
C' __R Buiiciing, Queens Road

F§§2p (f::T(}}"Q

Lr V-V 4-.C,x.v.;

.. .A.ppe.1lan'i:s
{By Sn' M V Seshacéhzﬁa, Advocate)

Egi///'...



E5" I35/I2'11':';' W §31<><.:.Ex:.

S3"! St:ag_{e

\7\z'esi. of Chord Rozlci    
B 221 11 gzklore  ?4{€~S:].}€)1'iCE€I1_t 

{By Sré ';7iveIv{ E--Iolia for M,' I5=1_(}§i;g'..3.éz ?*I(5iE;.i,.g7{é:ix?{')'(4§i£_eS}1;_'A

"i.'I.1e ETA filed zmder S(éif'$'.i\{}11 26QA"of t:1:e'I.:j_0r;::1e _'§F212§ A02,
196} ari31'n.g out of order d_;iied 24£i~?._-~2Cl_{)5: p'as-éééd in ITA
No.14'73/£3a11g/2004 fer E1116VegssessnaéntAT 'yczarﬁ 19954996
p1'ayi11g to a) f'o1'mL1!e1te. the s:t:}3s{au).{i-al quesi.i0:1~t)I'1aw stated
therein; b} aﬂow the apﬁeeli ;%111gi.Vs'et._V_a$idc the order passed by
the Income Tax Appeliate '£7ri1j:_::i:a.1'. 21Sp}:'aye.d for therein.

1TAawo.2797%g:g005

BEFNEEN;"" 5,f

"IT f£'he_Ck5'miﬁE:é:::;3i.Q  of £n(t'c>vm..e":TaX
,C R BuiT}d..i.ng'3.< ' ~
Queens  %

B2,mga.!o1"€t  "

2 V . The Dép_L1i,y .C3o.1I'm1£és1'or1e1'
, . Of"fE1COI1].§3"T;lX A.
 Gcriritrai CirCIé'¥}"{ 1}
, C R ;'3uﬂdin_g
_ " _(;t1.¢€:dS~v{.R'Q,21d
 . ; I>3'£anga_1o1je' ...Appe11.a.nts

[By Sn' M V Ses1'1acha!a¢ Advc>ca.te}

. 7 AND:

  "?}§I329xSI Ch.akr21bor1,hy

  ,..I"5""' Mair}. W I31L)c:k

Nw:3.535, 2*"; B Cross



-

3"" SE':£1ga3 "Wes: ofCh01'::.§ fkloaci £3ai:1g§:;1l01't: . , .f%3,t:$p.{>_1"1(i¢:7. 1;: V V. (BySr;E.V1'*vek.. Mona for M/s. mil-a & ii-Iona').4§;€1\.vg:cat..§s} _ "

"{"h.e ETA ﬁi€3ci Llnder Se<:'1,i0r1:'2'E3VOA; of "i.«he.; «31&i§'dr:'1c"'I5éX'}X(:f:g'. 196'} arising' out of order de11.ec§A_ 2--{1a»:?.;.i20'O5if:1; I'I'A "

N().}4?6/Balig/'2004« for the exssrqssnleiiti r19'95~~-.19:9V6 praying to 21) f<);'111u1a.i,e, the Vests-i:_)si.a11f'iai 'q'L1es21;i.0'x'y Vlaxzaz siexteti. therszzin; E3) alfow the appeall aIf1,_d"*~s_e1 asideVi.}1<:V*:>1*ci:-fzffjassed by the Income Tax Appellate Tribtxrml, 2:25; prayed' for therein. rm N0. 2798 M2005 « BETWEEN: ' I The Co111;11iS$i0i1<:i C R B11Vivi--d1'23gj .3 Queems Road' Bangalcére * ' V j of iréL?013'1%é 2 'l'1.1e Depu :5; .C<)m 1*11issiAo::"e':i._ 0i'Ir1.cV0!1'1e Tax' ' V"

V Cen.:rg«11 Circle» 1 ( 1"} .

. C R' vBi.1ii«Ci'£I1g _ Qu«e(:n:3_RU.3.d_ .¥_§3é.a§.§é1ir)V1_?'e._ " V ...Appe11ani,s {£33} V Sesimtthaxla, Advacate) 1 _ 4{:ﬁ)cF'3:;t.sl§§_5éii CE321k:"ab0ri:hy N'o.535._ I} Cross _ I5??? 'Ma'2'z'3., 1*'?-1 Block I mm , trtlN'V'1I!|/K 3*" Siege Wes1,<3fCh<)rd Road «. _ ~ _ : .' E3anga10re H._._.I"{es1f):)1t3d4e1'1t ._ [By Sri Vivek H0112: for M/s.:'H'e3'121 8; 1~I_oi£a,~ The ITA ﬁled u11:ie1' Seet.i0n"2,6'0A of the Alhedrzie. Ta}: Eaeiz, £96} arising Gut of {)rde:" -d__at':e<:i 'E-Z4~2~;2GQ5 in 'ETA No. l4?5/B21115;/2004 for 'Chg?' '=;18SCi'SS'H]€fi1',,vfy'€éi}" 19954996 praying ts 21} .f0rmuIate the s'Lii3.stanii211 ques1,.i.0I1v?oi' law stated therein: b) allow the appez11..a"r'1d _se1.é1side the"o:'der passed by the fncrome Tax Appe}}.g1ije T1'~i.bLI3I}?,1L""E1S.pii'3y€d. for therein. These ITAS eQm in.g 0%} " foi""ﬂi'iearing this day, N. KUMARJ deii2;e1"ec!_1;he'feliawi/:1g§;_ ' T %«*:*he' Re\}fe_n13e'§Vhas}i;reie1"1'ed these four appeais against the order p.2:ssedV by homing that the reezpening of the assessmer1t--« ,'W21SV i1'2_ed1%;'etr€ and consequently setting aside the 1"e»eLé;sessn1e111, 0fCE'e:i....« * '--.7;'3i:r1=1ce ideniieal issues are involved in all these:

appe'a;Is§'*,&i,h'ey are taken up for c:onsicier211ior1 together and ._ciis{p.Qsed" off by 'this common ordez' as has been done by the T::'ib'L'1"naI as well as other aut'hea1"it.fes. ;

ef £meerae~'}f'aX Ezippealej. The Ce11':r::'iiesi0:1ez1, ea"-a4e:".earei'2ﬁ ss::rui;in.y of the entire material an record; ee::'eizr;*e;;.IV'e-a%i.th"_"eihVe__V finding rec0'1'dec:i by the Asaessing"'Gffieer'_4anvifai::rf11saez:{'--.ihej' appeak 56 Aggrieved the the aseeS'sees.vv:;are;ferred an appeal before the TribvLii:.al?,.. heid that, when the Asseasing Officer his during the course of vV:t'eW;Lreat the amount as a deemed it he would not be eompéeent. issue in the reopening of the assessr:1'er1.tg' Section 147. Reopening of an asse.§3s"n1ent. b3f'a.V_V_:i1ere ehange of opinion would not be justified.

Tribunai allowed the appeal and held that the *-te0Tpe}f1.in_;:;--« .91 tfxaassessment was incarrect and accordingly the erdiez" 0f'_vreaaSessrneni pasaed was set aside.

" _ _ 3~ Aggrieveci by the same, the Rex-'erme is in appeal. ha"

2% /N 1 {1} 'I'h.e 185-'iI'1'N;'?{i CTf(.)::1'1s=:a<?1 for ("Em 2.;z.pp<3IE21;";i 2"x:&;_:.;aihI1§;;~_t.E1r:%r i:mpug11<;3c§ C}i'd€',I" t_éo1."1_t'e11c§crc§. 21$ :m<::ler:

{E21,} 'Fhe:'1"e: no E32117 a;1'1cie1'_f£:>]r:;t Ac'; Mii)?-:i'§f1iifiv21'f§{}i'"1 of':

p1"a3{:e-edixlgs L1:2{.1<':z' Ses::71é<'sn E4? 21I"§'.§:s: done, V .

{b} It 110*; a Case " .C1{.7 : §:$£)i11i Q§} by the Assesging Of"§'1'.(t:<=311 it &1~._z{V':' 'Li$'€3 ;fl [1.!(':,T(':J":T%j'1"€i£ %§€€%{?&1piI1g Vasssse-;-3sn1e11i'. 'I'he'r<:f0re.. the: ctase s(;1.1v;a.2::%I,:§i i1, 1r1::?l'€..r'° :§é:;c:i'i(311 1417 and Ethe order and valid.

{:3} am Direcéi01's in the C0;n;3a13%}y 1Q%W'c;t'1,he shares amcl EhL",£'€3fO1'€, zany an10u1f;i'i13.(?1z:di12§:,§--f,11I€..__Eéj:1'i'1 givc-'::1 Le) 21116113 by Lha Compzmy ciml, Qi' 'vibe z1£9.c:V-In1Am.U;'tat.éd p2'o{.'i.i.s. c?<)1'1st.ii.11t:€s c.Ee<;*.1':1e-,d dividend ";:111d"'ies 1i:'éiE31<§"tc> tax.

,8'; V _ T. ..'I'§3_ét'<:£'()1'e 'the order passed by their Aszsessing OfI'ic:er 21$' f;3Lj:fi1~I11.'f':.(j' L§i31'_;,*ATV"11'1<:: a1:>1)e:11z»1€'.e z1u1.h<>ri1_v is \.«'a1ici anti Eegal anti {I163 'V._'I'r%E:)1.11331";::0;1m"1i1.te:ﬁ 21 S<3I'i(}'U.--S <;>1";'<)1" in %::i'.c:'rfe1'i1i1g w'i1.§1 Lhﬁf ssziid G'1fdi3€1j. // :0. Per :'=.m'1i"2"z;1_. Um. 1ez:1';.°1'1cE{'1 CIc.)z.z1'1s5€:§ 21}};.>e%é1'1"i4:":§§"£70?-V.t:h.e EiSS€:?SS€f€.E5_. sz.:b:11it:ér:c1 11i':a¥;. no 1"e1u1"1'1:~; 'm.1ci bet::n_--~§':i1r:=.t1' .Meéf!3.§,?'.A_ in p111:em21r2{?e of this: 1'1c>£.1'ct<3 iSE3'L.1&'.C1,Mi.ji1I1€§f?'E" Eﬁéétjii-i;§_1'1. 'iv5'_%A{b){<:}';" :'et'.:2'rr1:a \,v'€1'<;% fi_1<:td_ B10C:1~; 2:ssse:s$a1z1£%z'E;i. wg£1':s ..<:1{)m~:. =.if"iss"i*{(';%i_.. ('Jjf,:jL:I} to the O'§'fi<7:-tr 1.<> :"£-:o_pe1'1 ifr;£:t ;:.ss::%éia%nf:t:§1t._}unti«:3_r » Seciion 14"?' of the Ac:£'. ' Sc3cc)1'_;gi:i'3~'.V %:r:_» <:c)"I§"E'L':..1VV:y_:'1V{:*:c:i Viih-31$; in the 11<:)tjce issued under S<%::r{:i.:.)xf'1 were called upon to $h0w ctmlge. in ihei}: hands should not filed their On consideratitm 01' the same, T V'L'.;1j*.::: -'_).i'_1'"ic;,é1' did not assess Ehe said inc.01n(~:, moi. if) :*e~oper1 the ass5sess§1'1e11'1T an the grausgxd of iI1L'201}1E'.' €SCé1'piI'1g asses:'sr11em ancl in p.21sssir1g ihe 'i:.11'pi1g;n;"e LCi Lastly he (:c);'1E'.e1'aded %,.h.21't:. ii. is settled law '---T'_."h.a,i, 2}; m'c%.1jé r_.jfi~1a.r1g£< of 0pi:3i01'1 \.v0L:1d 1'10? :::(Jr1:51.§'{.L1t:<:: a grouncl f01"'-rje~c);.3c:niA::g the e1ssess:m:%1'11. u.:1c1ez" Sec1.i01'1 14'? of the Act. "'1fhc2rc:1'o:ff:"he submits that the T'1'i'bL1r1a1 was jL1s:t'ifie.<i in setting '-.as3i{t1_<:>.--' Q19 e1*r:n'1e(ra.:s-; <)'rd.e1fs3 1:)as-.3se:<:§. As sL1c1'1. me ssaid ordey . not call for 21:23; i.1'11,er§"ct:'ctr1<?c%.

32 E 1, In \,-'§_s:~'w <">1"i:ht.-_=. 21E'><)vc: fa-;1ct'1,s;. zzrlci 1326? :"iv2;1§ €..TC}I1E.'si.f'E~1>'(.i{)i?:S. 1":l*1c- f{3Hc3wi.1'1g s1113.s;t.a.;'1.t:ia21E qL,1.c-7.<:~31'i«:i>;":.:-:; <31' Eaw 2137i5;%, 'our <:Gi1sic1e1"211.i0n in 1'.1"1es<3 21;;31:)e;é21Es9.

E I 3 1-Wlefihszr' M,» ;}:":,5c§§(;%Ve.*(Zinq$ z':ju'Z i(2f.<_::I. ' A i.i.I'1d.€3I" Sf-3{T{"i{i)7i .147 <1}/L K" ,iT§__'_'<f£: qj'1'er*"'E'f$Z<;Qi:c ass<3s;s:'71.er'1i. is II'?{1€3'é?,'«f$ L;{.1li'c;'.._<>i" m'.>£'.'*'f" ' {:2} In Efhg' '_f'c1c:I.sV_..(1:VéjLci__ L?ifC31,I,T?€£§fI(lIf2§;c'$xii Qf U'1.(fS(;' caseé-:» :Iu?1€_t:I1cg--r I."."~z.¢>~ ."i"'r:'_b:.z,n al was hj1.LSf,§fi€?d in hc>Zt1fA;_1g;; "1}i5i1. Qf the cLss.Ve2:3:5:§r1--2er'1I. ; or1 A?r):?j2:§;_is V' Q} chmtgje Qf api.~m'()r5ij.L'{s'_ ir~z.3,{crl_ioEZ?

Point N0.1_ _ A

12. "£1, ib11""«.__<'i"'i:3§)111,<:: that {he pm(teedi1'1gs wa~3re3 initiaiieci e1ga.i:-:e1.V"§;I1e 2.1nc1<-:1" Ch21.pter XlV-B. In V"pu:1*s1T1.21'h€:<% 'i.c2.i.11e> n0t:ice issued. the EESE'~3€SS('3€fS filed their ref;.urn, '-~s1"10wi'1;v§§"~i}'it: fu_fl~C':i;'€§Ci(}$(-3C1 income also. It. is §.11erc:e1I1,e.:". the sass-es-sr;1'e*11_1.Rordtfrs hm-*6: been passeci :«;mcI the tax due was paid by t.hc:zI1I "I1 is t:hcrea.i"i':er prc>c7€e<.ii:'1gs; were in'itiai.ed under '" ~._S€.(T1.i{3¥1 1.4!"? on the gmtmci t',1.'1z'~1'{: '(he 1(.>21;1 re<:.é=ivec1 by '$1.16 to 3.21 <:x'£<3nt. of R:s.€3§£30.()0()--O() eacih {T0111 the E 3;;/' £Z.';<.)n'1pz1I1y. has; «:?s's<'t2t1p€:r("§. e1sss~e2*ss;:1'2e1'1.1 for the €:.iE§f§€&§5§:1'1'1C"I'£_I4L'. fa,-'e%2L:"

199596.

13. IE. cflezau' fram Se<;:U(>:3 147 u . if V'i,h-=2:

Aeses-sairig Off'i(::~er P1a::»:~; 1'<;?21.<s<31'1 mI_ }.)f:?§:§f;",\"€{' ';~.e§j}é-1.i,'3113;"-..j1'1cs?:7me chargeable to La}; hale esctaped'u,ssesSi'1')ei'1é. !.'<)1",a;=1;;Vé:1&;:aae:§;:s3ri'1e1fi=:.e. yezu'. which comes ':0 his-; 110:1'(re's>.;4bsec;L1er';tifire; course of the proceedings, he of Seculon 148 to Seciion E. From the language e1r11};:¢'1c$V\'/«%:;grﬁ 'i11: ;3..1.&1":g:-A ii is clear that no dist'.inc'§i0r1 _§S'7fn12;1cie 13.e€;'m§_e{=_r1_' as E1SSCSS111CI'11 done undez' CE121pt.e1;--XI'xr'wE3 mf XIV} In other worde, Section 147 iS a1¥:t.ré'ir:..1.ecE I.o'._.'--.m~,a1:§'.s §s:3sn'1e11't made Lmder the Act and in sucgiié an. e1sseés9r:1era1.. if the ilmome chargeable :0 Sax has "e.Scéq*-eci 'asiér;:gss;1'1em for any assess1ne;1t'. year. the As:~ses:93;ng A~..C)£'§icee1°.,_i.5:.._V«eS'L«;ci.. with the 1:mwe,1' 20 or reassess su.c_'r1 i11L:Qme.v. '.E"i1"e:re is :10 ;3r0hi'bi'i.ie11 Llnder {he 1-'-\(t1.. for 1'e»0per1iI1g G1' em 21$~::es:s1n<:r11 done urzdez' C§'"£E1p1',GI" Xi\?--§§3. '1'§1e1'e§'c)1'e, we do ~ :'1<3t:" «§:i1"1::I emy subst:2.1'm?e in 1f.1'1e (1t(i)}1'LC?I'11i(.3I"1 01' 'the iihat .._.%§,.

the p1T{)C'€'E?C§iI1§§.'% 2..mc,1c>,r SSc;?<:1§{m 15;? mat" :1*£'1:"e;1<::.c-rd of Z;iE5-S€$S51TE€I"1'§'. :,:I1de:r C2}12-1pI'::r ><1.1V-"413, 'E'11c;-:1':'»:{J7::1re "i'7E..rfst__ SuIr)s1.a1'1t:§z--1E qua-rss'Li(:z:z 0? "law is; 2T:1'1:;;gx{c?:'c?c1 5i'I"1'"=iEi_v{)(fn" ":3f __:;h"<::. REVQIILIE ;':1i'1C1 214g21i.r1:91 '£116 POENT E\¥0.2 ' 1.4. The cm1t.<»:111.i.o1'1 ()§""--./,;_1.i"c "1.tha{£'.. wheri pmceedixlgs were iz3i*{.ia,1{r;ci_ 1.EI1£i€ 1; 'C}i2;1'§$'1';-:-§_1.' XIVJB' of the Act, in the course of the said pr0::€--:er.'ii1'ig::-3. was sewed with a r1()tiCe_..d:'-1L_e§}. 053,08.1:E¥99,R>i%§3_¢1'é1iii Vii: W215; categorically si.a.1".<:djt1';a'{; _i'1'AOi",t:--:V £_.11€,1"ec(51"~ciVs it jg seen. that 'the assessees have &raw11 nio1_1E:},{ I'1"'(yz7;1V*£:1'1'€ C'0.n"lj_;éi1'1y and have u'{.i1is<:c1 the Same for persQ11v:w.1 use-3 . v.71'1ieii* eXp}ar1a1.i<}12 on fhiss as; to why ii. should not 'V"bc'i';rt%af1-Ed £13 C1€€111€.C1 dividmlcl Esilmllci rez1(:h ?;'.11e1'r office within thg: ssfipi:rl«21't.e¢iT~giine. 'i'11<3r<3f()re. it is <:1eau' mat. the llotice. was speg:1'1"1{:.~i~:1_ Lhaillizlg upon 1.1/19111 to shew cause as to why the L111.c§iSC},g):écci iméonle shouici not be §1'ez1E_.€ci ass dee;=.me(i €Eivic1.:::1id.

" _1:1.>;"_¢.--pIy to this E~3Zl.1'1'1t'?. %,}7e§-* hzxvc-: giw-%r'1 the }:3211'§.i:;.%u1z11"s and 1.11632' have 21380 :~3pe.c:ii'i.c:a1}y stateci tI*;1a.i' L11'1dm' 'L}'1r;* z1g;'c%e1'11eaz*z': ciazied Egg/:',... ..

21" NCJW-3.mbcrr .1 992:": wiih %'v'§/ I")'I'Z.)C §,--td.. [Em s.~321§{_.'; '*Cf{:41'1_;i§::;1:1}I 'dg.1'€»':':d to pay an g1ci'm.1"1(:@ 0? f~2s5.i39.E5{}.O{§£)~(){)__;ia1I"'i.'1y--. the' sale (%c)1'1$5ic:ie1"a::i()1'1 gmci the l;}2:12211'1pc as, ..1g;ig;g1--;-.152; 'i'c>r"1&s*:§..i11"§g;. {mi the ba.1.a:'1c:€ pc>1"t'.i€:~IT1 c.)f1E1€r b1.1i1(.§A§.'z':;:;:;'['o .. '.136 i;*g>1"1.$i.'1'%.:ti-£561. ififiie C:):1::pan}r' mid a1g;.'6%;'~c§ to §1'1€: e'-:--!:>_Vc>v€ (:<>1'1:.ii.1.i<mv. é::1:1._V;11a'£dr: a.;"1* Z%1dV-"c1i'?1£}€ pal},-*1ne11t. of <;:£1.€~'<;«.1:.1_e.".'f.f 1.(>vv <ee1ch of the e1ggrc3gati::g _[;'1 {her course of the block asssess;.:.'1:en.t. year:A.»th;?_ has appiied his rmnd to 1}1is4_Vz-iéﬁa 11. \.vaé;s oloserved that the C0r11p;1z€1j,{V}i:ﬁ.S§_p24iV§'i_ v':c:;fVRs.6.€5O.OOUwOO to each of the Di3£.'€(E'['O1'éu_. i'.(§i.h}H}f'1.01RS:-39,60,OOOwOO. It, was agreed that the S2118.'{ZVQiESiC]'E32T;3LﬁEﬁI'1 11:3: "1i1'ié sczheciuled pr'<)pe1't,y to be sold, was fie Lbe Vdegtidéti mL11.1:aIEy. a,ft.er the <:0mp1e'{.i0n of the "CQ'1iS3irt1-f:'ii(ji;._ it was f'u1"ah€r 21g.I§1'eed that. '{.}."1:3. adv211.'1Ce paid ta 1.116 iemd'=.:;\§v'11VE-xf;é/Direct.orss wc)L1I(i be 21ci.§:.z$*{ed E2§.§2£iI1Si the sake c:o1'2.$ide:*&1._iC{:*1Aof the pzhperiy to be ira1'1si'e'1'1.'eci E10 é'he Compzuly as a.I1'cE.V__Wher1 {be $310 dcerci r:é>s;e3cu1.e<i. Tize C<>mpa1'1y 33:50 " ."21'g}'"{Zf§:'€i to "ialktié on E€2;':.s:;€ %'.he bziizulztc (:<;>n.s.;1'1."a.z(%'£'.ed aniéa ()'W'I1EEd by V _1_§3:1e E)i1"6:ci.c)rs for 1c)c:at.§13g its c>§'1'ic:e. After 2:c.I_§1.::si,i.1'};g the sale 1 {ix consi.(i<3r';"a:ii.i(>1'1, 'im? heal:-}1z{,':<=:= 2-'1(Eve31'1<t<? g:'§v<:?1i in the I...)i.r:-?ct't C.=.:";9 wzixs; decicied in 136.' t.3"ct;1t€:.ci ass R:'I"11..2-11 2.1(;1v21z1<*ci% ii)? 1:;->'£'.1i1.i V{3'e;:1i'.=.1.'i'1§3?;:"

pm;3er't'y' to (En: {;7(.>1'1'1§:>z.m;,r' 15; E-'2.c:?13,r1Zr"1g».;._é; on this. til. \xs"23.s,:I*£mt '1.';.d_Et('1 i'.§"%-3;» v¢*1':Vtj'z*1 {,}"?}{T(';/ _ ' the Oﬂ"i(:e1* P1355 E'l}i}'ii)1i('E("11'?.}1.i.$$ 1T'ii.I1'1C§~.{ff}_'{.}1_iQ tSpEf:C§i:ﬁC as-3pe<::':, of {he Izlauez' and did r;r_>i.'=}1;>1{1 Eh-Clfl >;:.,:(':1f1..i1'1é';()<m§: as iiabie' to tax, it is not c)pe11_E0 }1i111_____E':"c3»v_i1a%1;i.a£.t;? '1):'Qv(_.7eed5i11.gs uzrider Seczéion 147 of the 1r'X.Ct"'[:{)1"'§:,E,:_"£}3'4L:';';:B'$V€Eg£(I1§€1-11:' on the g1'oz.,md of 1'ncome esca1p3;11_s_;V. as;ses::sm<:'1}i1. a_s=_ it a1;i"c3,s§jai'1tS to changﬁ of 0pi1'1i.0£3. ifxi':-iysvvsVLi.i'3111i'E.1g.é€c3..._U1£2'1' i.houg11 the word:-3 'claemge of opiI1i0r1' i$ '-o:11m_cati ._11"n_ '1";':1__é"*«pi'cse.nE. AC1, 2:f'U3I' 1987. the Apex Courtwhlie""i.z1?t.e'Ii133:e('ii'1g,§Hie amended p1""0Vi.si()11 has held, that'. t:\re»:1~§E11vO£'1g1"1 the" 'p:"c__$_§7ni. Secliorl (mes not c:()11E"a§1'1 £,h0Se specific .w0rds._\i:<hi1eA' e.xe3.1'c:isi.I1g lﬁhe power ullciez' Se('tt'ion "147 of the Act.

"-1ihv£?1'A$$eﬁS«siV1;.gj;'~Q'§Ti(3o:: Elas to keep in Iuinci the said p1'in.c1'ple. Ikéizmily,,:'2r"1e"I"§3iy E3€c:au$e he H215 ('r1'1211'1g€ci §'1'%s ()pi.;'1i(;:1'1, he Czmnoi reopen 3:1 a1I'eaci'_»_-' (.'(')'{"}{?.1L1dC:ECi z1sse.ss111tt111. I22 ss:,1p;>01't. of his <§c)fni..<:1'1'1,i01'1. he 1':3}i<;'~:d 011 the }aIcig:11r;:m' of {he Apex Court in Lhc :2";

I //.

EKG).

1.?

(1336 of COMMISSIONER OF INCOME max, QELISJ Vs. KELVINATOR OF INDIA LIMITED I.'<:.=[.:3<;:1'i'.c?d in 723, *.,x.-Vhmc. ii he'-1s:~; been hrstld as under: L. V' "On g<)irT1g £I'1r"c3:.4giz the ('.7"i{I.¥'"i.kt}J'{.3V:'»,"?'_ "'..gf:'E..£{;?A§E?(xg' al)<)we;>, made In Se<?I"i()n I4?" C3_)'v'-EI$'2"€?',:'X.¢"_Ifi:'. prior to the Dz',reC{'. "I"r:z,xf L{I1.L5$ {Kn:::;rT1ﬁiT:2'z?;¢';~1f,}' I987, re0peni1"ag could Vfacﬁ (1()r1'é'._u}'z.de3I' {.+"':»,;'<Vé:

two {?0rzci1'.t.ions and' [M] "I'I:"r'1":.>.;»:;.Vif of thﬁ? alone ('.?C)?'1f(-?TI'(?dj1.11fif.$di('I i()V1'1..(7/:2'? V '7i'f'1't3..§1S$€'t»'t;'S'fE'1{} cgﬁicrer to make a back ds«.s'Réé's;;r7':;er:;;:_V 'rfsegczion I47 Qf the AC1: [wiI:'I'1. (;ff:ft'3(.'{i".I ; :u'e given. a go~by an.d~.o7"t-ly she :(rc§'g?z.c1i1.Vi:(3ri.'_*has 7r'ézI2ai.;'1ed viZ.. _(':I'§.3'Z=%.:'(:,":3Sl'I?'.(_;uE2Zﬁ£T€3I" has reason (10 E§é£ie'u¢ 'f.?{Ltift "~£::icoﬁua_"i;_g:z$ escaped a.s*sessmenI'. C()I7_]:3:'}:S"jl{I:iZ3d'f<;'ii()J'1:!' ";f.(§ reopen the assess;rnen.l:'. ; 'T'.'7,¢ref]k3re.->.. .{v)(J:'5'!'f'I' 1;'4m.1T98E?. power to reopen is mmjh V ' :'1Ujd€'{';. nf"I()1.b"VE,"VLV3'"(1,"J'"; OI'"i€ ?'1(:'6.'Ci7.S {"0 give-2 a sc':}'1,ema1ic f'.V?'4!-,t'V€V"!.'Jg"I"£-'.':)'I"g/E{£0}/I to (he u:.:orc1.s "reason to be:*liz3ve'* __ we arr: qj'r'c1.I'.d. Se<;rrjz'r;;2r'1. 347 would.

§;i_r,.*e~ _(if:'bfira:';; p(.)u.=€rS zio (I_I'1(,= assessing q[j'1'cm" to r¢%§i;;>er1. c:s$essrm.>.r'2l.$ on the basis Qf ".rnr.,->r'c cI'2an.ge A Q_f;'O[.)?'I1f()I'l'". zuhidz <:?cmn0I:' be: per se r'e(1sor'z 10 'V reopen. //4 "

In c:<m1i1'1.g {<1} i__'m:~. s231i{i1 {"f§'}i'i{?.§§Ef'*'»§(';1"L the ;7§1')r:;*>: C{.>L1.:'1. 1'<;'-'l'is:ﬂ~--.:)'r3_the CirL:C1a1° Nc}.54E3 <12-maid 31.. 3.0. ESE':-3 wI'1ic'%%": r<':a1ds:~: 21519"é--z1":ci€§'I'i:' ""/".2. Amer1drm.*n{" I?"l(1d_(:?.....I_"}y {item Aei. 153839, 30 r'eim'.rc)a'z,.:c:e the :e,x;3;*e;s:{5fj:'c§<f':» '}§et2':;(5'r":;. IQ H belzfeue' in SecrZ.f.oz2 _ 34- K :31 _ n1:.f:1};>erv ' eff «' represenI:'aI:'i(m::'; u.:er'e cgc;eiz:'1._._9I.'Ehe'-.g>2'i:1;f.é§S'ioz'i: qf ihe words 'reczson In l)el'ie:a:>e;'--'..:_/foﬁi' £T4}e«;-}ez'ic>1'1f? .247 and their SI£I)S£f;:['{1iE.I()I1 f bg_ {ﬁe. isg')i1'1i()r1'A the Assessing Qffi{:er, ' Al,i.?:C>:~:}u:' §'){)f_?::l?:V(=?efi_'~..Vbigii Z"I'1a.[ the meaning c)f*II}e e.xpfé%'sé{()r'1§' .»]9(L'lf€I,>e' had been f.rvi:'--r,1 fzitihtbex-A.Qj" ??()'Lzr'I ruinlgs in the past idnczﬁ-"'L:»;ﬂCie =--u2e'iE{';§ A§Vi:£Ee§'; ezgriv' ()rni.ss:I'.on from SeCzi'ic).r1: :*f1;.:::ou'id[ "g'1've'"a;=E:a'iVir(»:r;; pou.:ers {.0 the zf?issc%s'si11vgiuVﬁjfyiiecaf"éQ:'re><)p£:>r1 past" czssessmenis on m.ei"e C?1.arig.e To aliay rhese fears. {he V_/§'vsmeIi't"i~{ng has again amended Secrrfion {Q rei'r'1'ir(2_c;I_Lu:e the expression 'ims reason to «-in the piece of the words for 1'6-3(l£>'(_'N'L'}§ to be V' hfrn in u:ri£.1',r'Ig, is Qf the o_,_r)i.nf(§n'. OiF"ue.r E')'--(.)l.:"'i-'a%7;£.{")'T'(::5;' Qf 1"}'1.é:* new &3ec:i1'on 14'. 7, i'1.owez.:er. remcun. ;I'!'i?e3cLzme.

wiih SeCt'i<')n 34{}.}{b] of 1922 .Ac::1,, Ins hcjlcii as 1,11.1ci<;%1*: 1%} E6. FE°€JI".§'1 I335? a'§:'):'<;-';%:'~:a1i{'§ _}'1.1.{"1g1'1';t:>:':%., 2": £55 'i"~w§_.E:é'..E: 'Ziﬁ,€f?I' Oi.O<»'.L.1.989. the ;'&:ssi_'::.~.as3i'1'1g Ofﬁcz-3.1" hzezsss }'Zf(i)'%}rf'<';'i:i'"

provideci ihs*.:'(~? is; {.a11'1gib1{:. 1'11z1u,e31"ia}__I.z:z ,<§(}m€ 1<'> i.§1z.£j» {If§Z1§I2'§ii&%iQE"£' thaé them. ES <3s<:ape;'11e1'1I 91" §§'i{'.(}§"I'1f;'."'§§"(')I:§'i' a:§§:e:?Es=$s1*i1s;§1'1:. ?€;s;*.2j.tE§:;3:r;S; rrmsi, }1av<-3 21 111:6 Iirtlk with L§'}.~';? [j(j§3*3;fE9.t§{)ﬁ- of f..13<:r'E.>t ' A H16 €f{)I1C€§_)1. of (?11a11'1ge, of <);3it'1i(_>__;_}VVV'-21:5 3:1. i1'1--bL.1_1'}1. !.c§.?§;£'. 110 check abuse': of puwea' by 1":h(§3_§» 13115:; {.0 be kept', in mind. If the coneepi. '1'Js:~; removed in the garb of woulci iake piace.

There is a power1" to review' and the ;)0v;fe'r _;~s<:>.ttT}ed law that: the Assessing Officer hAéi;«3_ He only has ;:>c)\ve1" to I"€'.--E1SS(:'.SS. Ii is in.1jh.iS'-L7rait:l«;gt"oL.1n<:1 it is 1'1ec:€ssa1"y to 100}: into ,..«.

1/.

'"VE.11ej1it1g.me1'1--fzof t:1'1t= ??';j§{?x Cou1"L \.v1ne1'<;=. t.}'1<-r scope of'1'e2.1sse.n1e113, 'Vbe§é'13_V<:>§<i;3.1_a>{i1'1c%de '1'hr3 1.eadi:1'1g r;:as:«:e on 1}}? point. is; KA11,fi?*ANJI"ﬁg_,1:izJ1 32, co Vs. COMMISSIONER OF INCOME n=:'g:>v<:)f~'1,<::i in (19'.?'6) 102 IT}? 287 (SC). 'ZI'E'1e E§1.113r(3.;11cé C(::u1"I, 2 V 'Z H cixvéfverf ' 'ix this Court. f"h.e>_fbEi(:>1.::i:'2g is-,=:<;!;<s (md pri.r'1<:ipZe¢3m;_;ic1z.ft':;:2':1. V apply to (1ez«3rI'm'rI.e {.118 a,I.J,t3Z{c'(1I3z'Z1'I;.,r Q/' .53 L?-§3%"I}{ "On. (1 c_%«:.:»II'tl-.>iI"z&2£z7. z"cz.%z'::?z.:.*- <.;jaf' Jim? dc?("i5:;i0m:

I;f'1.g>.ﬂ)llOu.>{11g;} c.'CufegO:'1'e;2s Qf (fciseés:

{.1} {:3} .,=i'1er€ ('he i.?'{fI}I'I'I1.(/1.1.l'Oi"'t. as 34.3 if.»"1c*E4m¢"c;n..§iH' <>orre*Ci sI'.a£.e? of my Zaw (i'r;?I'ii;a¢?(i ijmf?:..Vr'é?is?Lrc:.fi.:i'j * ju.diCz'a.£ C.1£'(3f5§I'()I1Sf> _ "~ uéflere in fhe? origi1'2c'1K4{¥.'VV:{j'Ii;;> ['J'ﬁVo'§f(_)i'?'1€' liable to t:'(1,»é' 'Ems ::L<;::g23::;'7'a1é)5:AI cling I10 ov(3rS£gi1!:'. ﬂi1':r;'ci:;é2fi,E'I'}e::ce 1:1 mistake co1nr::I'--lI.ed o}3L.={ousl;J béjisetﬁ-oz: Ehe? p"rirfC'ip_ie'~ 'iLi'z£z,E" the iiwcpayer LL2(,:if£.£(;i. "f1'«%e1t' bbk?ff€Li'f0v.L§é:(i =i:o »--z (1ke adva,nI.<:1.ge of "an? 'o1,ve5%§$igh:igt);-" I'?Ii,SI:'é{.}C8 CO1'!'1I"2'1i.!"Il£'d. by the " _ tic' eci:1g. £y ;i.'f1Qjft:y7"' :,r;.'=her& (.326 =1'r'§j'}f)r:'r'e.a{i<J1'2 is c1(3r1'v<3ci from an ex'-f.+:ff1'Ea'l sﬁitzrcte (gf any kind. Such €Xt'€rI1(1i 5o1L:'C€"i::}c)i1lci 1'1j1{:{z,1d,e (1i$(,'0z.:er'y Qf r1811,» and "«iff1pQriia:'1r" :naI"{,e:'$ or krm1.ui.ecige (ff fresh u.1f1i.cf1 we.>1'<3 120: pI'<;'S€!lZ. ml I.h.e Lime Qf * _ kaiie origzhai assc:s:sm(,>.nt, i.L?h€I'L' ihrg 1'.r1/k:=r1"n..a{.zToz1 Inay be ob1.czi:"zs-acgi even. from the record Qf the origz'n(1l aﬁsessmenf from. an irwesz"1'ga.z":on <'g_fI.i1e maI'e.>r1'.a.Is on the § 21 ?"€'{"()?'€1. or {i"i::{f"cz.:'7i$ 51 zis;CE{).<;<.>{2' I"?2::)rc.>i');; r>ra;?_?o~r3{i"'.V oihrar c-3:'1q11iry or r'<:?scar{,?i1 ir'r,:'ai)__fcz.c:is <2Ii«?__(m,§." ff ' 1ff'{.h,ese c:<3ncEz'.zi0z'zs are .<.~;c2i.z'sgi"z'.e(?~z'hé3:'1 f1a:.=g> c:o1'r2pI.e2°'e_ju.r"isdr'ct'i<3r'I recgf-,z;>s-1?; i.§rzg§ AA CL':?S€?SSI??C?""i{. ii. is <>b1.>z'(>t{::_zi'I(1.f é:z.,>£'1Es:"é? i.i'u:{?».fVi*ITC''g;L£e2''s':': . no subsequent 1'r';.jk3rmai'ic3r'Ii_V,rEm: zwzéezigj '?I'c)s' reopen ("he <)r:'gz'na_3 c:zsse%s._s:__r_z:z"e.rjz ':._;_;iZi1().z.}zi: «c;.r;_1;; facts or rnateriais ;._§.)}\ L£_51f£."i:1.{)l:17.'A };z~r:1y'»_§'r2.q1tizgj imlo the rzlafierials wIu'<:I'2, '.};\()'I"7"3'i'h'v'v'}".':'!b{?£bf'l' __.,.\E2';'7A/f.fbiiaé <)n'gin.al assessrnerzzfg ' £34{:1'ﬂ}V{?)} 'giépLgZd..:i>:;aL:a%- 1'25) VizppZi(>a£:'ion. " '18. ;1=1n&a4.;xi3.;:.-;:«_ Ce.u;;::1_:."~;..,:_1 L"."E:"i€""VC'(-}wV$'3I\ of MAHARAJ KUMAR KAMALQ SINGIIYS. COMMISSIONER OF INCOME TAX reported in (1959). 35 I'1'LR_ I :_(SC}--.:ié31.%:1}g with ':".1'1r: 1.'ez:1:-O"ssses:'-srxat-3n'; Lmder S€c':,ion 34[1L}--[1)).'v%1e1c§ 21.»; 1..i1%f{c:1':

_f'I~3ver'i";'fme'assessce has s1zbm.if£:'e:>(1 a ret.um Qf his-.aii*:~{:orne. cases n'1::zy well ocrcur where the 'iui<1'o:{r;n<;f' incorne has not Ir)e>¢>r1 €1,sse_<;s;é?d. and Vsuch Q1" {he in<rom<:7 has not been osssessed <:%g:zfz; wail be regarded as haa:r'.ng escaped V A as;<;'es£;r"rzer'zzZ. In the prc-,=sem"' c?a.sc:2_ {E19 re,>n.z'sf r°:3(:ciz.:<~:'c1_ _£:>y z'.i'2.e assesses h/}"c;nn fu'.:;; agrr'cuir.1..:ral {ands were 22 br<f:2a.:_gi2z to {.I'1£: .?'!{.)f'[_(.'E:' {gf ':'f"£<2= I"I'O: Z'i'2<'? (;;1.scsi.i0I1

1.u:"1erf'1er t.}'1<:> gczici. r:u'm";1,n'1I can be ca:;sc-,%s:.;eci3;'ii3'1.'«£.cu:.% ' 5 ~ was <:(J:'2$i(Z:27*eci and 2'!" wcis ul.1.ima.Icl;T,1 held " {.];2(1v:. f*i1é4 relez2ar'1.I. dz-,>c:isi«:)n Q1" rim lT'c1£.r'1::1"ﬂ'--1'.§.{f'z §T,?()1.1Vr4"1.'" :;1.r,"1i€.*f'2__f«.

LUCLS bir'zdi.ng an the-2 l.)e.>;;>c.':%:Uz'2c:j1'2i... '_jI,.1E3i§;,'°i.s,é(f assressexfs claim zhczt. v£?i:.g{ SC1id. fI:E'f,?<f;|IT'2t?:uf:"i2Ci$ #10:] liable Io be assessed (.0 i.5(2;:cq"3f5f1.é2:"r=3. ;1V:)u.cTi_"c.nz;E5':V i':'Ht*zfs a parr. of rhca c1:>j.$essee}<'~:«-- ft'A"r'25r_«:;¥z*;--a,V.; }'1cic1" --zitOI Beer':

assessed and, zir1v':;,i:1..C};':'. _$e.--"':'1s£;;_.' "fi:.ccs;"t?i.njc1rlg; esc?ape>d assessment, Can be .~'i4.I'V1 ('.z.'-L]Zﬁéscause the matiier L_£,'£3S:i4COFISiéélcrgéﬁt..a.I'1.d'"d.§?(§f{Tf(:'C§'(LIII ("he merits in :'f1ej.Ei_?;~I'1_i: }jz'_ﬁd.i;'1g;,_{;u_i¢I!'1ﬁ>1'z{iﬁ <gj' {Che decision (J r.f1é--.Vj3c£.Iz:;'g fi:'FVigi1«.VﬂVC'?;<§1,;.ri'§"fat: '§;z1V£;'*(>r7'1e has escaped {<3 Paaha High Court:

c?fe._¢i$i@I1 }'"IvCVIiV?: " rcaversed by 1"}1e {Wing4_CfCs:.1.I1£1ViI?"ir'ifa{ Se-26' no _jt.1s!.§fi(.rc1£.i(>r'2 for lloiding "i'}1gL:': casca_sV Qf fn£"r0r72e es(:(1pir1g €{SS(;'S'Sf'?'1€I'1i must" C£it,1Ja§,IS be C"a;~'s'és where income has not been c13$'e>s':s<,3Ci.._o:z2ir1g Io z"r'zadverience or oz2ersigI1f' or ._ ; (§im'i_i§;_ £519 fa<;'i ihal no r"ef.z.1r'11 has been: s;:'b?n:?;'ied. In aur opin.r'.:')n. ever": in a crczse i..1:h.er'1. a '~reI3't.:m. has been. s1zbmi.£':'z.s3cZ, 1' " :.h.c.>. 172%") e'?r"r"{)r':.(;>(3'[£:'=;II. _ . J A 'T jlails to tax a part. Qi'c1$Sessczb£c> iru;'ome3, ii: is (1. case : wi1.ere the 5:~:cu'd par!' «rgf ihe? i1"1«:.'<.)mc has <.-.>s.;(:.a;:wer} assessr':1er'z.I:'. "

23

19. '.1'h.:::: fxpex (?01.1:"1 in £"1:1e:s <"':é.i..'.~;f}.' COMMISSIONER or INCOME TAX, DINESH CHANDRA. H. SHAH AND Qxfrjgns.':=.:sps:§i}:Vsagmx -(,1 9&2} . 3 SCC 231, i.r[1"t:€;t:"'131*:;?1.is.'2.;__{ E3c::*ti<>1": 'I:}'{§:}.,1:' ¥..1'I"".,("§.'{i':}1; §',}].(ﬁf' {';§_{1 held as Lmder:

"It may be f'?1.(:.'J1f.l'.()'%:iEd £3511 .£.'f1s:> _ relating to Sec£io;'%i_'3«fI{ 1 M5} gfce :.q.i {{L_;iQr1 CLI'?VdA. ii." rnay seem that CI.I'L?(;?I'_(,"}(;?I'l'f' 1}_i€?[,;}S§.vE:iCil.P€f_"l3'¢'éf3f"é1C,:¥]I}f€;?SS6i?CI. in some Q/' Igfjc 'crgase , :31" N; 5 0f :'!:21;3,:';éb1.Llicuﬁj'%1<r The R§3i._%e2?1?:;§i(f(?%)Iﬁ't'I'I%}cid !f'E)r"'"Ih.L<' pr'op()s1'u'or1 lvilicfi «.fI:i€;% f¥'ff{ad§'CL§ E:-Iigfl. Court in C"l'F'?"1"f§y VLj> (21%: ';S"{Ii"i}CL:LI"H.i'1.§]C1 Nadar 1.». Tax, Mr:Ld.ras. l1'h.Ct1_ alt} a.oa :g}'1. 'c:;=.1ﬁéf<: Qf opzmcm. regarding the .¢i1arg'é'c;tbIE;i;€g;; -- Qf Viiicrozwxc on the part. of t'.he r§3_fcVi::sjM_essir"ig ffiezvex" d§[]k:reer1(fr"c)r'r'z h.1's own previous (_)_bp:A'J1£:')':ﬁ«:)r ihal. Qfhis prcciec:essor in. Qffinrc? migm. not m1d.r:r E3ec:I'ion :54{J}{b) but income lL?f'1f.'(fi:'?':~.V.(?gCCIp€3S c1ssesS1I're.n.l as a r'esu.ii. Qf the Iaclc «Vz,=@iiaz':{:€ QJF {he Incem.r3 Tax Q[,f'Ec<:er or due {.0 1'Vfi'c.LCiL2e:>ri:eI'1c:c> or r1eg£1'gc-zrme or due Io pcrj_!'1t1'1c?(.<)ry pe{]°f)rr7'1.a.I'1cée (gf his (.fz1rﬁ'2'c-'es; wz"£}1c>m due c:*o:re and c?aL.L£:1'()I'1 ccmld tueaii be u.>i.1"}'u'r'1 thee €U'I'U')1'l. af Se'>cr£'1'.or1. }.121vt"?"_«furtlissheci the 1'eq_uisi1'.r:? ir3§'()1'n12:2ii<.>11 zlboui the :"<~3c:.e.ip1'. of s7~':...1Ic§s::e:c;1.1e:,*:§*i. to €130 <.>:"i;g;1'm.1§ as-::::.;é:ss-:1'z1c1':'£". £:3x-ma ii" Elie i;r'1~*f'{_f>'1r.;j1'i:3J{.ion is Ob1,E1i11{:'.{'1 fmn1 the 1"{?0L'»1.'d 0i."{.1'1c= {>1'i.g._{i.zT:;11 21:~;s'-se3:.--:~::_:11eiri:Q'*-!"1§(::§I1f:_ a, proptsr i1'weS1ig21E'.i<)I'1 from l}'1¢;'? 1'1':2.1i.w::1'%.»zAgIs'§ on :'<'%{:"<";:-'c:'£'»;)i"=t.'n:a: fzegciijs, discilosed l.he:':3by or fmm a:1'1y €"1']C}_L'i:i:1'},' 91° :."¥::s3c{-T21.rc21n"":'n.ii) 02* law, 1"e~¢~1s3sess;H1e1'.11_ is; §.3c:tz'1'né«*§!si"i31€§.'-._ I"f}{T(}§'1'i!f£v' A..AI1'1.'<i5" . "i'SCV'£'1§.3é~ assesslnem, as; 21 res3L1}t. of lack d'£:'._w':g1:i21::}<té3* r3:§" t.§1<;'. .§;3.cc}1"r1<: Tax Offiver or due. 110 ;3ez*i'L1:éA{:.t_:{:)'*,"x,'A his without, due. Care and c£1L_:1_1'.()11. VIAi1x.rr3':::1 1-1;') I'{'?'{'.L.l§"I] has been submitted. xyéaga '1"a;":}«s; to tax 21 par: of the assessable i'.{ i:s ézaici gaart. 9.1' H19 i31()()£'l1C h.avi.ng; _ 21:18 the 2.1SS€SSii'1g officer has jE,11'iSCi"iCi':i'L}.{3f4'L1}'3I;6 to 'r"eope1'1 T.1'I€ assessz11e11t and bring_g'to_ J{,'c1XV1,h€Vi'!'IC(JIT}f3 £1211'. has escapeci z1ssc:Ss11'1:3..12L A tax "p;1yé:1" (E:éfi'nriA'o1. be a}.E.<>\>v<:tci to take z2:_cixra11'1t.21ge of azly" of {hose A ~--.1a;f_)Se:%,.. 1T1}E.i':11V2i~tely §€s3L.1(?1'1 2?: ac1ve1:1'i'.21g;fe aélowed. it would be prc:-j,udi(iia3_ i;§.:; U16: inte1'es1,s of the. 2"c:'\;c?1'11.1:? z-md pub§i(':. i':"1i.eres1,.

21. " V in Hue ins;st,2z1r1.1 (.:2'1$c:. ii. is no c;§<>ub'1 m,.1s: the &iSSfiSS€'.S f$3,€.§ Rs-;.{§.EiO.{}OC};'-- fé"<}:.1'1 the <".<'>m1.:>;.;1.11.j; 2:54 1a:11'3.. '1'hc~. 21:s<s:;<*s=é.%;i.:f}1}§'§~ §5Pf§4;%cs2' at the E11119 of L§'::3, 1:31(.)€.'k: 2'.1s.'es%s~A~:s.-'>11';<=~*.:1tC ha;-zste h'-l1}£t:'1'1 1'1 Bué, he diii :'1<:>L f01'm 2113:' <>1')i23.%{.)11 s;j<3:...§£._1_:j 21s9_--'i.l"i"é":(.>fi. that i1'1o{)m:: is {'fGi':{':f:',I"I'1£;'.CL It onﬁy w§";e1': 1<>u1-;iI1g._§ §:1i::.0 1.11:9 1:..%T<V_>'<';.§.<_.V..§ said amoum was showy; as 1()E'}Vl."1"':;L.:t).:§.}§£;: aSse:=3s1':ng officer has 0pe1'1.ed §1iVs*-- "i'1_é}:s.~: i'1<<;a1ise{1 the rnistake C.0m1ni€t.ed. I--1:2 w:_1$ sat :b1"m.2g.111. to tax the said iz1c:L1n.4¢"§iﬁg pé1.':3S(-7d. It is 110:. a case of f1 o1. i'(}§'1T1T1<-Ki any 0pim'o1:1. on this c>.1%»'Eﬂ_(_.)_<?k 11. xx.-as 21 case of an Omissioﬁi DI'"1(',E'. he 1"ctaEi:§e::l the ::1T1.ist.ake. he 113$ _i1'1iti_21E,e.dV}.:rQ€:eedi1:i§§s unclcr ScC.':.ion $4.7. 22-_.._ h c'1Ci""i')j§-' i.}:1e X-\.pe.><. Court in all f1'§t?5SC? cases {he ;$;i._1i{:§g.$1"<::_i.i.1éii.__iVs§ i'.o be kept. in. mind 1.§'1aE U11", iax 1:12:13-»'c',1" should 110%; be zalldxﬁcd to talie ac1\.!2'1n1.2'1gg;e of an c)ve1".s;Eg.j§i"§1 or 21 mistake:

(1(.}1'1'1I"i'1.5.v[§.,Af;'.£i 133% {he 'I.'z1.xi11g z'\L.1t.hor1'.:.y. It. is; 1'10? in v:h's13:,1'£(*: that {in-3.:ét§ are E.)i1*c<:1<>1"s of the Ci<311'2p211'1y k1<.>}(1i.r1g ITEOTEZ {hall 5 <*,€,m'1p2m.y. Tbs'? z15a<~::':%..°.ss~:<.::{:r (..i£.)1"1.L{,'.£"1('§f*§ 1.11.0 21(jf(..'.L1I"{1L§§E1'§.ii'?{i '[;'1':1:,1"'t«f:¢ (if the c:<)mpar1y as 01': E.4.2€}{)4 was; zméy I'~3:92.€i.;i3i2:qr;L 1.4,!"-"isiI'1{'1"Iﬁ§TITCf¥;f§I:fﬁ;V the paymem. of E'5€s..3':}.6(3,{}£)O/ » _c,:2:1..::}:11()t 3:§é "£%i§'}Ef1$i1}'1i.f;7'T} 21$. pzlymerlt. 0f 3 E0211': (ml of the. £.i.('.{'.fL_1E"11;L1.§&1I*{§3{§ ..;;V)1*{>37i.I_ ;'x.xJI*;is:t§;:'if.~'51329:1313 £0 "tax, in .f;-icti, 1.110;: 511 Eh:-= a.:s,I<'-ic..'r'=,ssi:':<f (f)§fi.(.'§':i" as v¢i::1IV.21.s [ha f'iI'€-3;'? appellate e111t.h02':":y hzxwfgé 1"1r;"=EdtE'1§ ';i)r()i'i'L as per me books of 2:(:(%(>vz.:"1:1..Vl ' -- 011% of which Rs.3£~3.60,000/~ §s_pa_id. I"-ii;_'§1'i§;ﬁ;:;;.g;li§{:'1 ";:{(:;.1c7 %1'1£'o~ the said qL1esté0'r1. din? not cicacide the appeai on V:t.'h:£:' of the assesssing officer as we1}_ as E':f%§1*: ;;.1:pc'11:;i,e 2m'tho1*it.y on the ground of an e1"1'0ﬁ(€; {isc%Xcegi;éVi%§§i~?):f"'j*1_;fit3'€ii<:Liar] and "the: c1121r1ge of opinion, whie:i:1=w_e1s I"GLm"d'fé1L1}i{' \>v"1£.h. 11: is <;:o1":i,enc1ed 1.I'1a'1_._. as the said "}0e£I""1 .153?'z;1dh<3¢§H.edl:.r'"i§e1.ic1 01'; 28.3.I.995. the a(:(:o11r1t of the A'~compim§J'«Vhé1dVA'T:ﬂ,g$i, laeen 5301' tied. The ac:(::un'2L1la.1.c:(§ p:'(J§'§1 had no? E36621) d<:.::}71$é:rd. As per tins. %30<)ks of 2.u'<::)L11'1t.s, ms on 1.4.2004, 1h€ 21(§(:1,;;'11L:1ated profit. was (ugly Rs.6.32.41.4/~ a.r1{§ t'hert3f0'1'e. ii: " -_w21_s_ .~Co:1t.e?11d::d ﬂlzxt, there: was no £iabi1.i1,y '£10 p2;1y ﬂax Lmder V _Sec:1?,i0:1 2{22){!:)). As 'i,1i1is:s C§i.I(.'.'i3U(.)2'} 120i: gorie 1:110 by' the

Legal Document View

Unlock Advanced Research with PRISMAI

Karnataka High Court

The Commissioner Of Income Tax vs Rinku Chakraborthy on 6 January, 2011

Bench: N.Kumar, Ravi Malimath