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TMI Blog1990 (8) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... essee in the original assessment proceedings have to be considered in the reassessment proceedings without examining the question whether such claim, if allowed, would result in no escapement of income in the original assessment ?" The proceedings relate to assessment years 1968-69 and 1969-70. The assessments were originally completed computing the income, subject to tax in India under rule 10(ii) of the Income-tax Rules, 1962. Since, in the opinion of the Income-tax Officer, the assessee's taxable income had escaped assessment, the assessments were reopened under section 147(a). In the reassessment proceedings, the assessee, inter alia, made a claim for loss under section 32(1) of the Income-tax Act, 1961. This claim, it is an admitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ur court again construed the scope of reassessment under section 147 of the Income-tax Act in the case of CIT v. Indian Rare Earths Ltd. [1990] 181 ITR 22. Though this point, it is stated, was not directly in issue, the court is stated to have held that what is true of an assessment must also be true of a reassessment because a reassessment is nothing but a fresh assessment. There cannot be any dispute that, if reassessment is a fresh assessment, the assessee would be entitled to make all claims which he had not made during the course of the original assessment proceedings. Shri Jetley, learned counsel for the Revenue, on the other hand, stated that the issue herein was covered in favour of the Revenue by our court's judgment in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his court in Kevaldas Ranchhodas v. CIT [1968] 68 ITR 842 was good law. Apart from that, the Full Bench of our High Court in the case of CIT v. Indian Rare Earths Ltd. [1990] 181 ITR 22, has observed as follows (at p. 29) : "In the circumstances, it appears clear to us that once valid proceedings under section 147 are started, the Income-tax Officer has not only the jurisdiction but it is his duty to complete the whole assessment de novo. What is true of an assessment must also be true of a reassessment because a reassessment is nothing but a fresh assessment. The Supreme Court in ITO v. Mewalal Dwarka Prasad [1989] 176 ITR 529, having approved the categorical observations of the Andhra Pradesh High Court in Pulavarthi Viswanadham v. CI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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