9911796707
TMI Blog1996 (8) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... se is 1980-81. The relevant accounting period ended on March 31, 1980. In respect of the said assessment year, the Assessing Officer completed the assessment on August 30, 1983. As against the said order, there was an appeal and the income was finally fixed at Rs. 87,400. In view of the order passed by the Tribunal that the provisions contained in section 41(1) of the Income-tax Act would be applicable to the assessment year 1980-81, the Income-tax Officer was of the view that this assessment will have to be reopened. While recording the reasons for reopening the assessment, the officer referred to the order under section 263 and the observations made by the Tribunal. The effect of the order of the Tribunal was that the amount claimed for p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said order, the assessee filed an application for reference before the Tribunal but in vain. Hence, the present application has been filed under section 256(2) of the Act. Heard counsel appearing for the assessee and learned senior standing counsel for the Revenue. The reopening of the assessment in this case has been made under section 147(a) of the Act. The above provision can be invoked in a case where the assessee fails to disclose fully and truly all material facts necessary for his assessment for that year. The question is whether the assessee has failed to disclose fully and truly all materials relevant for assessment for the year 1980-81. The Government have issued notification granting exemption from payment of purchase ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, whether in cash or in any other manner whatsoever, any amount in respect of such loss or expenditure or some benefit in respect of such trading liability by way of remission or cessation thereof, the amount obtained by him or the value of benefit accruing to him, shall be deemed to be profits and gains of business or profession and accordingly chargeable to income-tax as the income of that previous year, whether the business or profession in respect of which the allowance or deduction has been made is in existence in that year or not." What is involved in the present case is the cessation of liability for payment of purchase tax. When the assessee has made a specific provision for purchase tax liability and on the basis of that provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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