1960 (9) TMI 103 - HC - Income Tax

Summary

Issues Involved:

1. Inclusion of rental income in the petitioner's tax assessment.
2. Claim for deduction under section 4(3)(xii) of the Income Tax Act, 1961.
3. Jurisdiction of the Commissioner under section 33A(2) for revising the assessment orders.
4. Applicability of clause (c) of the proviso to section 33A(2).

Issue-Wise Detailed Analysis:

1. Inclusion of Rental Income in the Petitioner's Tax Assessment:

The petitioner was assessed to income-tax for the assessment years 1951-52 and 1952-53, including rental income from two houses. The petitioner did not claim any deduction under section 4(3)(xii) during the assessment or in subsequent appeals to the Assistant Commissioner and the Tribunal. The assessments were finalized by the Income-tax Officer on November 30, 1953, and the appeals were disposed of by the Assistant Commissioner on November 20, 1954, and by the Tribunal on May 9, 1955.

2. Claim for Deduction under Section 4(3)(xii) of the Income Tax Act, 1961:

The petitioner claimed that the construction of the houses was completed within the statutory limits prescribed by section 4(3)(xii). However, this claim was not raised during the initial assessment or in the appeals. The petitioner applied for relief under section 4(3)(xii) to the Income-tax Officer and the Commissioner on December 10, 1954. The Commissioner dismissed the application on September 28, 1955, citing a lack of evidence for the completion date of the buildings.

3. Jurisdiction of the Commissioner under Section 33A(2) for Revising the Assessment Orders:

The Commissioner's jurisdiction under section 33A(2) was invoked by the petitioner. The Commissioner dismissed the application, stating there was no evidence for the completion date of the buildings. However, it was later conceded that there was material evidence supporting the petitioner's claim, which the Commissioner failed to consider. Despite this, the court upheld the Department's contention that the petitioner misconceived his remedy by invoking the Commissioner's revisional jurisdiction under section 33A(2).

4. Applicability of Clause (c) of the Proviso to Section 33A(2):

The court examined whether the Commissioner had jurisdiction to revise the assessment orders under section 33A(2) when the orders were already the subject of an appeal to the Tribunal. The court concluded that clause (c) of the proviso to section 33A(2) barred the Commissioner from revising the orders since they were the subject of appeal to the Tribunal. The court emphasized that the finality of an assessment by the Tribunal could not be disturbed by the Commissioner's revisional jurisdiction.

Conclusion:

The court dismissed the petitions, upholding the Department's contention that the Commissioner lacked jurisdiction to revise the assessment orders under section 33A(2) due to the appeals made to the Tribunal. The court noted that the petitioner could have claimed the relief under section 4(3)(xii) during the assessment proceedings or in the appeals to the Assistant Commissioner and the Tribunal. The finality of the Tribunal's order barred the Commissioner from exercising revisional jurisdiction.