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TMI Blog1989 (11) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 41 (2) of the Income-tax Act for the assessment year 1970-71 ? (ii) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in holding that the Income-tax Officer was not justified in reopening the assessment for the assessment year 1970-71 under section 147(a) of the Income-tax Act ?" The facts which can be culled from the statement of the case are these. The assessee is a limited company which was formerly engaged in the supply of electricity to the towns of Bilaspur and Katni. It had certain electrical installations and business activities at both these places. The original assessment for the year in question, viz., 1970-71, was completed by the Income-tax Officer on June 30, 1971, on "nil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of the High Court. That appeal is still pending before the Supreme Court. In respect of the undertaking at Katni, the arbitrator gave the award on February 21, 1970. The District Court confirmed it on July 17, 1972, and the High Court on June 27, 1979. As, according to the Inspecting Assistant Commissioner, since the awards were confirmed by the District Court in the accounting period relating to the assessment year 1970-71, the assessee had earned the income under section 41(2) in the assessment year. Since the assessee had failed to disclose the same in the original assessment , proceeding under section 147(a) were justified. The assessee's appeal before the Commissioner of Income-tax (Appeals) did not find favour with the Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the return of income, but prior to the end of the relevant accounting period. The Income-tax Officer, therefore, could not have reopened the assessment proceedings under section 147(a) of the Act. Alternatively, it was submitted on behalf of the assessee that in so far as the Katni undertaking is concerned, admittedly, the award was given by the arbitrator on February 21, 1970 and it was made a rule of the court when the District Judge confirmed it on July 17, 1972 and the High Court confirmed it on June 27, 1979. Therefore, in so far as the Katni undertaking is concerned, by no stretch of imagination could it be argued that the money had become payable at any rate before July 17, 1972, even if the date of its confirmation by the High Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1965 up to March 31, 1973; and (ii) the award in respect of the Katni undertaking had become final on June 27, 1969, and that in respect of the Bilaspur undertaking had not yet become final at all and, therefore, no money was payable in respect thereof even up to date. In so far as the second point aforementioned is concerned, the Tribunal has taken the view that no money became payable under section 41(2) to the assessee in the assessment year in question. But, with regard to the first point argued before the Tribunal-although the argument has been, noticed by the Tribunal at great length by even going to the extent of quoting the contents of the letters relied upon by the assessee-no finding has been recorded by the Tribunal as to whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the final court of the land, viz., the Supreme Court. In these circumstances, both the questions which have been canvassed before the Tribunal and which are agitated before us, seem to be interlinked ; for, in the ultimate analysis, we have to see whether the Tribunal was justified in holding that the provisions of section 147(a) of the Act could be said to be attracted on the facts and in the circumstances of the case at all. In that view of the matter, it was necessary for the Tribunal to record a categorical finding on the first point aforementioned. We are, accordingly, constrained to call for a further statement of the case from the Tribunal after recording its finding on the question whether the assessee had all along been discl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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