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TMI Blog2013 (4) TMI 447X X X X Extracts X X X X X X X X Extracts X X X X ..... as not correct in holding that reassessment proceeding could not have been initiated as the assessment proceeding was not completed within time-limit. In view of the aforesaid discussion appeal is allowed in favour of the Revenue. - Income Tax Reference No. 127 of 1982 - - - Dated:- 12-4-2013 - Prakash Krishna And Ram Surat Ram (Maurya), JJ. For the Petitioner : S. S. C., R. K. Upadhyay For the Respondent : Vikram Gulati ORDER (Delivered by Ram Surat Ram (Maurya),J) 1. At the instance of the Commissioner of Income Tax, (Central) Kanpur and the assessee, Income Tax Appellate Tribunal, Allahabad Bench, Allahabad (hereinafter referred to as the Tribunal) has referred following questions, for opinion to this Court, unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication dated 18.02.1974 under Section 143 (2) (a) of the Act raising objection for addition of (i) Rs. 1560/-, which was received towards bungalow maintenance and (ii) Rs. 3475/- received by the assessee on account of reimbursement of entertainment expenses. Thereafter the Assessing Officer completed assessment under Section 143 (3) (b) of the Act on 31.03.1977. The assessee filed an appeal from the order dated 31.03.1977 which was allowed by Appellate Assistant Commissioner, Kanpur by order dated 15.02.1980 on the ground that the assessment was not completed with the time-limits prescribed under under Section 153 (1) of the Act as such it has become time barred. In the meantime the assessee filed his Income-tax Return for Assessment Year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 147- Income escaping assessment:- If- (a) ....... (b) Notwithstanding that there has been no omission or failure as mentioned in clause (a) on the part of the assessee, the Income-tax Officer has in consequence of information in his possession to believe that income chargeable to tax has escaped for any assessment year, .........." 5. The assessee was an individual and was deriving income from salary. Under Section 15 read with Section 17 (2) (i) of the Act, annual rental value of the rent free accommodation provided to the assessee by the company was liable to be counted in his income. This fact was disclosed by the assessee in his return. Subsequently on the basis of report of Income-tax Inspector, the Assessing Officer f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ormation in possession of the Assessing Officer for reassessment. The proceeding for reassessment was not justified. In view of the above discussions, question Nos. 1 and 2 are answered in negative i.e. in favour of assessee and against the Revenue. 6. So far as Question No. 3, is concerned Section 147 of the Act provides for reassessment in case of income escaping assessment. It is an independent provision authorizing the Assessing Officer for assessment and reassessment in case of income escaping assessment and has to be exercised within it's frame. Supreme Court in Chatturam Horilram Ltd. v. CIT, (1955) 2 SCR 290 held as follows:- "For the purpose of the present case it appears to us sufficient to say that, where earlier assessment p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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