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TMI Blog2009 (10) TMI 233X X X X Extracts X X X X X X X X Extracts X X X X ..... massive credit balances in the current and capital accounts of the partners. Based on this and other information, the assessments of the firm were reopened and reassessments were completed under section 147 of the Income-tax Act, 1961. Following the information collected from the firm’s accounts and assessments later completed, the assessments of the partners were also reopened and completed under section 147 of the Income-tax Act. The Commissioner (Appeals) cancelled the reassessment on the ground of limitation and this was upheld by the Tribunal. Held that- (i) according to Circular No. 5 of 2008 in respect of composite order under appeal, if the tax involved at least in one of the assessment years in above the limit, then the department ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credit balances in the current and capital accounts of the partners. Based on this and other information, the assessments of the firm were reopened and reassessments were completed under section 147 of the Income-tax Act, 1961. Following the information collected from the firm's accounts and assessments later completed, the assessments of the partners were also reopened and completed under section 147 of the Income-tax Act. The appeals were filed both by the firm and by the partners against reassessments contending that such assessments were barred by limitation as limitation, according to the assessees, was available only up to four years from the end of the assessment year. How ever, it is the conceded position that if reopening of the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o. 5 of 2008, dated May 15, 2008, issued by the Central Board of Direct Taxes and the decision of the Bombay High Court in CIT v. Grasim Industries Ltd. [2009] 319 ITR 154 and contended that the tax effect in most of the cases is below Rs. 4 lakhs and so much so, appeals are not maintainable. However, senior standing counsel Sri P. K. R. Menon appearing for the appellant referred to the circular and contended that in respect of composite order under appeal, if tax involved at least in one of the assessment years is above the limit, then the Department is entitled to maintain the appeals for all the years. We find the contention tenable because in the case of the late Sri M. C. Varghese, the appeal is only for one year and the tax effect is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... diture made by the assessees during the years from out of records and assessments of the firm. It is proved yond doubt that the assessees have not disclosed all material facts required for completion of their original assessments. In fact, admittedly, the income of the respondent-assessees was in the form withdrawals from the partnership firm, Mangalam Publications, of which they are partners which admittedly carried on business without maintaining books of account. Therefore, failure by the firm and its partners to disclose materials required for assessment stands proved. Following our judgment in the firm's case above referred to, we hold that reassessments completed under section 147 in the case of the respondent-assessees are within tim ..... X X X X Extracts X X X X X X X X Extracts X X X X
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