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TMI Blog1995 (8) TMI 105X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee though had created the liability for payment of luxury tax amounting to Rs. 58,049 for assessment year 1987-88 and Rs. 59,000 for 1988-89 did not in fact pay the same. (3) The Assessing Officer asked the assessee to show cause as to why the above amounts should not be added back to the total income under section 43B of the Act. The assessee disputed the claim of the Department. (4) The Assessing Officer found that the assessee was not liable for any luxury tax and, therefore, the creation of liability was itself wrong and the amount in question deserve to be disallowed. Therefore, notice under section 148 was served on the assessee. The assessee filed the returns for the year concerned on 14-12-1992 by adding Rs. 58,049 for 198 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceedings are commenced de novo and are governed by all other relevant provisions of the Act. The notice under section 148 is always issued read with section 139 and the enquiry following such service under section 143. The Hon'ble Supreme Court in the case of V. Jagamohan Rao v. CIT [1970] 75 ITR 373 particular page 380, held as below : "Once proceedings under section 34 are taken to be validly initiated with regard to two-thirds share of the income, the jurisdiction of the Income-tax Officer cannot be confined only to that portion of the income. Section 34 in terms states that once the Income-tax Officer decides to reopen the assessment he could do so within the period prescribed by serving on the person liable to pay tax a notice con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the Supreme Court in ITO v. Mewalal Dwarka-Prasad [1989] 176 ITR 529. The Hon'ble Supreme Court proceeded to explain V. Jagmohan Rao's case in the case of Sun Engg. Works (P.) Ltd. It was held that in the proceedings under section 147 of the Income-tax Act, 1961 the ITO may bring to charge items of income which had escaped assessment other than or in addition to the item or items which led to the issuance of a notice under section 148 and where reassessment is made under section 147 in respect of income which had escaped tax, the Income-tax Officer's jurisdiction is confined only to such income which had escaped tax or which has been under-assessed and does not extend to, revising, reopening or reconsidering the whole assessment or pe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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