2000 (6) TMI 134 - AT - Income Tax

Summary

Issues:
1. Reopening of assessments under s. 147/148 of the IT Act.
2. Claim for dropping reassessment proceedings under s. 152(2) of the IT Act.
3. Computation of total income from figures after giving effect to orders of CIT(A) and Tribunal.

Issue 1: Reopening of assessments under s. 147/148 of the IT Act:
In the case, the AO had reopened assessments for the asst. years 1982-83, 1983-84, and 1984-85 based on deductions allowed during original assessments. The assessee argued that all necessary information was provided during the original assessments, and the AO had accepted the claims after due verification. The Tribunal found that there was no justification for reopening the assessments as the AO had allowed the claims after being satisfied with the correctness of the information provided. Consequently, the orders of CIT(A) were set aside, and the additions made were deleted.

Issue 2: Claim for dropping reassessment proceedings under s. 152(2) of the IT Act:
For the asst. years 1986-87 and 1987-88, the AO had made additions to the assessed income. The assessee claimed relief under s. 152(2) of the IT Act, arguing that the additions should not be made as the assessed income already exceeded the total income after considering the alleged escaped income. However, the Tribunal noted that the claim was not raised before the AO and rejected the claim under s. 152(2). It was held that the income worked out in the audit report could not be considered as the correct income liable for tax. The Tribunal also emphasized that the issue of deduction under s. 32AB for the relevant years had already reached finality and could not be reopened.

Issue 3: Computation of total income from figures after giving effect to orders of CIT(A) and Tribunal:
In appeals by the Revenue for the asst. years 1982-83 to 1987-88, the dispute arose regarding the computation of total income. The AO had computed the income from the original assessment figures, while the CIT(A) directed to start computation from the figures arrived at after giving effect to orders of CIT(A) and Tribunal. The Tribunal upheld the CIT(A)'s direction, leading to the dismissal of all appeals by the Revenue.

In conclusion, the Tribunal allowed appeals for the asst. years 1982-83, 1983-84, and 1984-85, dismissed the appeal for 1985-86 as infructuous, and rejected the claims seeking relief under s. 152(2) for the asst. years 1986-87 and 1987-88. Additionally, the Tribunal upheld the CIT(A)'s direction regarding the computation of total income in appeals by the Revenue.