9911796707
TMI Blog1992 (1) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... are heard together because they are based on the same facts. The petitioner (Shri Rajan P. Shah ) in Special Civil Application No. 4057 of 1981, is the son of the petitioner ( Smt. Nilavati P. Shah) in Special Civil Application No. 4058 of 1981. These petitions pertain to the assessment year 1973-74. The petitioners submitted their return under section 139 of the Act along with the statement of total income (annexure-A) and copies of accounts in the firm of M/s. V. Raj and Co., with a footnote that for construction of the building at Nargole, the amount stated therein was withdrawn. The Income-tax Officer, Central Circle-11, Ahmedabad, passed an order dated March 5, 1976, under section 143(3) of the Act. That order specifically states tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the assessment year 1972-73 that a sum of Rs. 3,351 was spent on purchase of cement and iron bars, etc., towards joint property to be constructed by the assessee along with her son and as such proceedings under section 147 of the Act were not legal and the Income-tax Officer was not justified in treating the sum of Rs. 19,211 as the assessee's income from undisclosed sources. Subsequently, for the assessment year 1973-74, the impugned notice dated August 11, 1981, under section 148 of the Act was issued on the ground that income chargeable to tax for the assessment year 1973-74 has escaped assessment within the meaning of section 147 of the Act. As stated above, the aforesaid notices are challenged in these petitions. At the time of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rial facts necessary for the assessment for that year. At the relevant time, the Income-tax Officer ought to have verified whether the statement submitted by the assessee was correct or not. With regard to exercise of jurisdiction by the Income-tax Officer under section 148 of the Act, the law is well settled. Still, however, it is appropriate to reproduce certain observations by the Supreme Court in the case of Parashuram Pottery Works Co. Ltd. v. ITO [1971] 106 ITR 110 as under : "It has been said that the taxes are the price that we pay for civilization. If so, it is essential that those who are entrusted with the task of calculating and realising that price should familiarise themselves with the relevant provisions and become well-v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to disclose facts ; secondly, those which are material ; thirdly, the disclosure must be full and, fourthly, true. What facts are material and necessary for assessment will differ from case to case. In every assessment proceeding, for computing or determining the proper tax due from the assessee, it is necessary to know all the facts which help the assessing authority in coming to the correct conclusion. From the primary facts in his possession, whether on disclosure by the assessee, or discovered by him on the basis of the facts disclosed or otherwise, the assessing authority has to draw inferences as to certain other facts. But, on the primary facts, it is for the taxing authority to draw the inferences. It is not necessary for the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
