9911796707
TMI Blog1996 (11) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... on January 10, 1980. The matter was remanded to the Assistant Controller for fresh assessment. Three questions were directed to be considered. We are concerned only with one question, which was "whether half of the estate passed as contended by the appellant after the death of the deceased, the late Dewan Pritam Singh". The Assistant Controller discussed the relevant facts and also relied upon the assessment of the deceased in the status of the Hindu undivided family both under the Income-tax and Wealth-tax Acts and proceeded to hold that only half of the estate passed on his death to the accountable person. It appears that an objection was raised by the internal audit to the view taken by the Assistant Controller. Thereupon, the Assis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deceased was the sole surviving male coparcener of the Hindu undivided family governed by the Mitakshara school of Hindu law and, therefore, any alienation made could not be questioned by any female member of the Hindu undivided family, because on the death of such coparcener, the whole of the property including coparcenary property passed by intestate succession to his own heirs. According to the accountable person, the file did not show that any information was received by him before issuing a notice under section 59(b) nor were any reasons recorded. Actually the reopening appears to be on the basis of some audit objection and the contention of the accountable person was that the audit objection did not constitute information, hence the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment, the case had become time-barred. Further, the Assistant Controller of Estate Duty was actually not himself inclined to reopen the assessment which had been reopened because of the letter dated October 5, 1983, written by the Inspecting Assistant Commissioner of Income-tax, Audit, Patiala, the relevant part whereof reads as under : "2. The orders of the worthy Commissioner are reproduced hereunder : 'Let the Income-tax Officer reopen the assessment immediately and in time.' You are, therefore, directed to take immediate action as directed above. It is advised that reasons for reopening the assessment should be properly drafted after consultation with the Range Inspecting Assistant Commissioner, if considered necessary." T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Income-tax Act but there appears to be no similar provision in the Estate Duty Act. However, the exercise of such power is also subject to several conditions such as notice to the assessee and passing of a judicial order against which an appeal lies to the Tribunal. It is rather difficult to hold that all this cumbersome procedure could be circumvented by the Inspecting Assistant Commissioner (Audit) conveying directions of the Commissioner to the Assistant Controller of Estate Duty. If these directions were not there, probably the Assistant Controller would not have reopened the assessment because although his order reopening the assessment does not contain any reference to the audit party's report or the direction of the Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... determines as to what is the effect and consequence of the law mentioned in the audit and tries to streamline the position in the light thereof, for curing the situation of escaped assessment, it would amount to information because the basis of the belief would be the position of law in regard to which the officer became aware". In Indian and Eastern Newspaper Society v. CIT [1979] 119 ITR 996, the Supreme Court held that the opinion of an internal audit party of the Income-tax Department on a point of law cannot be regarded as "information" within the meaning of section 147(b) of the Income-tax Act, 1961, for the purpose of reopening an assessment. The court said that though an audit party does not possess the power to pronounce on the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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