9911796707
|
Home
Issues involved: Assessment year discrepancy, validity of reassessment under section 147 of the Income-tax Act.
Assessment Year Discrepancy: The petitioners initially filed a return for the assessment year 1984-85 declaring income of Rs. 8,22,400, later revising it to show a loss of Rs. 55,660 due to an amount of Rs. 8,52,000 claimed as income for engineering services rendered. The Assessing Officer included this amount in the 1984-85 assessment despite the petitioners' request for it to be included in the 1983-84 assessment. The Tribunal directed the Assessing Officer to decide the inclusion issue based on available documents. Subsequently, the Assessing Officer reassessed the income for 1983-84, leading to the petitioners challenging this reassessment under sections 147 and 148 of the Income-tax Act. Validity of Reassessment: The court examined the legality of the reassessment under section 147, emphasizing that the provision allows for reassessment only if income has genuinely escaped assessment for a particular year. In this case, the income of Rs. 8,52,000 was known to the Assessing Officer and was assessed for the 1984-85 year following the petitioners' requests. The court concluded that the income did not escape assessment and therefore the initiation of proceedings under section 147 and the subsequent reassessment were deemed without jurisdiction and an abuse of legal process. The court criticized the authorities for not applying their minds and for the mechanical handling of the case, ultimately quashing the impugned order. In conclusion, the court allowed the writ petition, quashed the impugned order, and did not award any costs to the petitioners.
|
