1983 (4) TMI 86 - AT - Income Tax

Summary

Issues:
Reassessment under section 143(3) read with section 147(b) annulled by CIT (Appeals) - Change of opinion - Clubbing of minor son's income.

Detailed Analysis:

1. The appeal before the Appellate Tribunal ITAT Chandigarh centered around the reassessment framed under section 143(3) read with section 147(b) of the IT Act, 1961. The crux of the revenue's argument was that the annulment of the reassessment by the CIT (Appeals) was unwarranted when the issue was brought before him.

2. The case involved an individual assessee, Shri Shubh Karan Bansal, who had declared his income in his return, including his minor son's share of profit from a firm. The dispute arose when the succeeding ITO decided to include the minor son's income for a different period than originally assessed, leading to the initiation of section 147(b) proceedings for reassessment.

3. Upon the issue being presented before the CIT (Appeals), the reassessment was annulled on the grounds of being a mere change of opinion, a decision disputed by the revenue and brought before the Appellate Tribunal.

4. During the proceedings, the departmental representative argued that the minor son's entire income should have been clubbed with the assessee's income based on the applicability of section 64(1)(iii) from a specific date. The counsel for the assessee, however, supported the CIT (Appeals)' decision.

5. After evaluating the submissions and facts presented, the Tribunal found no grounds to interfere with the CIT (Appeals)' order. Drawing parallels with a similar case, the Tribunal upheld the annulment of the reassessment, emphasizing the ITO's attempt to revise his initial opinion as a key factor in confirming the decision.

6. The Tribunal highlighted that the conditions under section 147(b) were not met in this case, as the ITO lacked sufficient reasons to believe that income had escaped assessment. This further solidified the confirmation of the CIT (Appeals)' decision.

7. Addressing the argument regarding the applicability of section 64(1)(iii) from a specific date, the Tribunal reiterated its stance based on previous decisions and upheld the annulment of the reassessment by the CIT (Appeals).

8. Ultimately, the Tribunal dismissed the revenue's appeal, affirming the CIT (Appeals)' decision to annul the reassessment under section 143(3) read with section 147(b).