1995 (4) TMI 3 - SC - Income Tax

Whether Tribunal is justified in law in holding that the reassessment u/s 147(a) cannot include items already barred u/s 147(b) & accordingly in deleting the six additions made in the reassessment for the assessment year 1959-60 - Whether 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 u/s 147(b) - both the questions must be answered in favour of the assessee

Summary

The Supreme Court, in a direct reference under section 257 of the Income-tax Act, 1961, ruled in favor of the assessee against the Revenue. The Court held that the reassessment under section 147(a) cannot include items already barred under section 147(b) and justified the deletion of six additions made in the reassessment for the assessment year 1959-60. The Court also upheld the Appellate Tribunal's distinction between items falling under sections 147(a) and 147(b) and the deletion of items of additions that could be brought under section 147(b). The reference was disposed of with no order as to costs.