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TMI Blog1984 (8) TMI 76X X X X Extracts X X X X X X X X Extracts X X X X ..... uthority recorded a best judgment assessment. The assessee did not put forward the plea that there was a partition in his family even though there was one. Subsequently, the assessing authority got the information that the amounts received from the Coffee Board in the names of the assessee's sons from the family properties were not included in the taxable income of the HUF. He issued a notice calling upon the assessee to show cause why there should not be a reassessment under s. 36 of the Act in respect of the income concealed by the assessee. There was no, reply to that notice and so the assessing authority confirmed the proposal. In the appeals before the Deputy Commissioner against the reassessment, the assessee complained that he was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the authorities below, we must now proceed on the premise that there was no claim of partition in the original assessment proceedings. The assessee no doubt made a faint reference to the partition in his letter dated November 25, 1978, but in that letter he sought an adjournment of the case. The authorities have rightly stated that the reference to the partition in that letter could not be construed as a claim of partition particularly when in the returns filed subsequently, the stand taken by the assessee was that he should be assessed in the status of a HUF. The question, however, to be considered is whether it is open to the assessee to contend in the reassessment proceedings that there was a partition in his family and, if so, whether ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eadnote): "Reassessment will, without doubt, come within the expression levy, assessment and collection of income-tax" occurring in section 13(1) of the Finance Act. The local laws in Part B States are, therefore, saved by force of section 13(1) of the Finance Act for the purpose of making reassessments in respect of any period for which they have been kept alive. The three expressions 'levy', 'assessment' and 'collection' are of the widest significance and embrace in their broad sweep all such proceedings for raising money by the exercise of the power of taxation ". In the scheme of the Karnataka Agrl. I.T. Act, we do not think that a narrow meaning could be assigned to the expression " assessment " so as to exclude " reassessment ". ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any of the requirements which may be included in a notice under section 22(2) and may proceed to assess or reassess such income, profits or gains it is, therefore, manifest that once an assessment is reopened by issuing a notice under sub-section (2) of section 22, the previous under-assessment is set aside and the whole assessment proceedings start afresh. When once valid proceedings are started under section 34(1)(b), the Income-tax Officer had not only the jurisdiction but it was his duty to levy tax on the entire income that had escaped assessment during that year ". In CST v. H. M. Esufali H.M. Abdulali [1973] 90 ITR 271 ; 32 STC 77, the Supreme Court, while dealing with the scope of the relevant provisions of the Madhya Pradesh Gene ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... documents or any other evidence which the assessee may wish to produce in support of his objection. When such a notice is received, the assessee has a right to prefer his objections and produce his evidence as he may think necessary. The assessing authority may make a reassessment if necessary only after considering the objections raised by the assessee and after examining the evidence. If, in the course of the proceedings, the assessee contended that there was partition of his family properties, the assessing authority cannot refuse to consider that question solely on the ground that the question was not raised in the original assessment proceedings. The assessee has got a right to raise all the legitimate contentions in the reassessment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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