9911796707
TMI Blog2021 (2) TMI 644X X X X Extracts X X X X X X X X Extracts X X X X ..... by a bench of this Court vide order dated 21.11.2017 on the following substantial questions of law: "Whether, on the facts and in the circumstances of the case, the Tribunal is right in setting aside the re-assessment order passed by the assessing authority by holding that the are no valid reasons recorded by the assessing authority to invoke re-assessment proceedings under section 147 even when the assessing authority has given valid reasons for invoking re-assessment proceedings and all the ingredients of section 147 are satisfied in the case of assessee to invoke re-assessment proceedings?". 2. Today, the appeal is admitted on the following additional substantial question of law: 'Whether on the facts and in the circumstances o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral additions mainly with regard to sale of properties. 4. The assessee thereupon filed an appeal before the Commissioner of Income Tax (Appeals). In the appeal also the assessee again contended that the income belongs to HUF. It was held that the land belongs to HUF, which devolved on HUF by a registered partition deed dated 05.08.1978 and income arising from sale of the property has to be assessed in the hands of HUF and assessment of income in the hands of individual was held to be incorrect. The Commissioner of Income Tax (Appeals) by an order dated 05.08.2011 directed the Assessing Authority to proceed to against HUF to assess the income as belonging to HUF. The revenue challenged the order passed by the Commissioner of Income Tax (Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 153 of the Act which empowers the Assessing Authority to include any income excluded from total income of one person and to hold the same to be the income of another person and on assessment of such income of such other person shall be deemed to made in consequence or to give effect to any finding or direction contained in the order. It is also contended that the tribunal has not interfered with the finding of the Commissioner of Income Tax (Appeals) that a colorable device has been adopted by the assessee and about the conduct of the assessee as well as the applicability of provisions of Section 171 of the Act. It is also submitted that satisfaction recorded by the Assessing Authority for invoking re-assessment proceeding under Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat intention of the assessee is to avoid tax and the same is a colorable device. It is submitted that the matter requires re-consideration by the tribunal. In support of aforesaid submissions, reliance has been placed on 'MAHADEO PRASAD RAIS (DECD) VS. INCOME TAX OFFICER & ANR.', (1991) 192 ITR 402, 'COMMISSIONER OF INCOME TAX VS. FARUK ANVAR COMPANY', (1993) 199 ITR 433, 'POONJA ARCADE VS. ASSISTANT COMMISSIONER OF INCOME TAX', (2010) 326 ITR 123, 'KALYAN ALA BAROT VS. M.H.RATHOD', (2010) 328 ITR 521, 'R.B.BANSILAL ABIRCHAND FIRM VS. COMMISSIONER OF INCOME TAX', (1968) 70 ITR 74, 'INCOME TAX OFFICER VS. BACHU LAL KAPOOR', (1966) 60 ITR 74, 'COMMISSIONER OF INCOME TAX VS. ABDUL KHADER AHM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons, reliance has been placed on decisions in 'INCOME TAX OFFICER, A WARD SITAPUR VS. MURLIDHAR BHAGWAN DAS HUNGERFORD INVESTMENT TRUST LIMITED (IN LIQUIDATION) INTERVENER', (1964) 6 SCR 411, 'CONSOLIDATED COFFEE LIMITED VS. INCOME TAX OFFICER', 1983 SCC ONLINE KAR 301, 'CONSOLIDATED COFFEE LIMITED VS. INCOME TAX OFFICER', 1991 (187) ITR 43, 'PEICO ELECTRONICS AND ELECTRICALS LIMITED VS. DEPUTY COMMISSIONER OF INCOME TAX AND OTHERS', 1992 SCC ONLINE CAL 368, 'COMMISSINOER OF INCOME TAX, U.P.VS. M/S MOHD. SHAKOOR MOHD. BASHIR', (1973) 4 SCC 107. 8. We have considered the submissions made by learned counsel for the parties and have perused the record. Before proceeding further, it is apposite to take n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r to give effect to any finding or direction contained in the said order; or (b) any income is excluded from the total income of one person and held to be the income of another person then, an assessment of such income on such other person shall, for the purposes of Section 150 and this section, be deemed to be one made in consequence of or to give effect to any finding or direction contained in the said order, if such other person was given an opportunity of being heard before the said order was passed: 9. From perusal of the order passed by the tribunal, it is evident that the tribunal has set aside the order of assessment mainly on the ground that the Assessing Authority has not recorded independent findings to revoke re-assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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