9911796707
TMI Blog1987 (4) TMI 119X X X X Extracts X X X X X X X X Extracts X X X X ..... 70 under sec. 143(3). A copy of the assessment order has been filed. 3. Subsequently it came to the notice of the department that appellant's wife Smt. Piar Kaur was in possession of jewellery which she had declared in her wealth-tax returns filed in respect of assessment years 1975-76 and 1976-77 on 10th of March, 1976 and 19th of August, 1976. Though she claimed the jewellery to be her personal property and in her possession ever since her marriage before partition ofIndiain 1947, the Department took the view that in the absence of definite source of income it could be the property of the appellant. 4. The assessment was accordingly sought to be re-opened under sec. 147(a) by issuing a notice dated20th March, 1980under sec. 148 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion contained under sub-section (2) of sec. 263, which stipulated that no order shall be made under sub-section (1) to revise an order of re-assessment made under sec. 147 of the Act. On merits the assessee resisted the proceedings under sec. 263 of the Act and paragraphs 8 and 9 of the reply submitted on 24th March, 1986 before the Commissioner, I like to bring in focus as follows :--- " 8. When the matter came up before the IAC (Asst.) in the proceedings u/s 148, I explained to the IAC(Asst.) that the jewellery was given to my wife by her in-laws and parents at the time of marriage. An affidavit from my wife's brother Shri Ram Singh as well as from own brother Shri Santokh Singh were filed before the IAC(Asst.). Copies of the explanati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edings on27-2-1984. " 6. For the appellant Shri Joginder Singh, Advocate appeared and argued and I was assisted by Shri R.S. Adlakha for the Revenue. 7. Whereas for the assessee Commissioner's order was contested on several counts, the learned Departmental Representative submitted that in view of the amended provision w.e.f. 1-10-1984 the Commissioner had the necessary powers to vacate the order of 27th February, 1984, which according to him, could only be termed as an order of re-assessment. 8. There are several aspects which should be noticed in the present case the primary being of limitation. To understand the controversy it is necessary to bring in focus the relevant portion of sec. 263 as it existed before its amendment w.e.f. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sec. 144-A or sec. 144-B ; and (b) an order made by the Inspecting Asstt. Commissioner in exercise of the powers or in performance of the functions of an Income-tax Officer conferred on, or assigned to him, under clause (a) of sub-section (1) of section 125 or under sub-sec. (1) of section 125A. " Sub-section (2) has been amended and may also be brought in focus as below :---- " (2) No order shall be made under sub-section (1) after the expiry of two years from the end of the financial year in which the order sought to be revised was passed. " Sub-section (3) also remains unchanged. 9. In view of the above provisions and the stated facts, the first question which arises is that which order is sought to be revised by the Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the above and assuming that the IAC (Asst.) order of 27th February, 1984 could be termed as re-assessment and therefore, within the ambit of review proceedings under sec. 263, the CIT could at best pass order himself even after the amendment by 31-3-1986, but direction of enquiries for making re-assessment was certainly beyond the scope of sec. 263 considering the safeguards of limitations of the section. 13. Again, the order of 27th February, 1984 if it is termed as an order in pursuance to proceedings u/s. 147(a) could not be revised in view of complete prohibition contained in clause (a) of sub-section (2) of sec. 263, as it existed before 1-10-1984 because the assessee got a vested right on 27-2-1984 of immunity of proceedings under s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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