9911796707
TMI Blog1982 (6) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... e Land Acquisition Act on May 24, 1961. Section 6 declaration was issued on September 6, 1961. The Collector gave the award on March 14, 1962, fixing the compensation payable to the petitioner in respect of the building acquired. The possession of the building was actually taken over on April 3, 1962. There appears to be some dispute regarding the quantum of compensation and the same was finally settled by the court on April 21, 1966. For the assessment year 1967-68, the capital gains arising out of the compensation received from the Government were brought into account. The ITO computed the capital gains at Rs. 1,08,098 by his assessment order dated May 30, 1969. The assessment was confirmed by the AAC on appeal preferred by the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r s. 147(a) read with s. 149(a)(ii), and, therefore, the reassessment proceedings, in respect of the assessment year 1962-63 made in this case was well within time. Aggrieved against the order of the Tribunal, the assessee sought and obtained a reference to this court on the following question of law : " Whether, on the facts and in the circumstances of the case, the reassessment made on January 17, 1975, for the assessment year 1962-63 is within the prescribed time ? In this case, the reassessment has been made on January .17, 1.975, for the assessment year 1962-63.. If the assessment is taken to be under s. 147(a) read with s. 149(a)(ii), as held by the Tribunal, the period before which reassessment has to be initiated is 16 years a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment in that assessment year. Taking note of the Tribunal's view that the capital gains could be taxed only in the assessment year 1962-63, proceedings for reassessment were initiated, and those proceedings have been questioned on the ground that they are timebarred. The Tribunal in this case has given the following findings for its conclusion that the provision applicable to the facts of this case is s. 147(a) and not s. 147(b): (1) that there is no indication in the return or any statement accompanying the return for the assessment year 1962-63, regarding the acquisition proceedings in respect of the property " Lucky Bungalow "; (2) even though the original assessment was made on February 19, 1963, and further reassessment was made on J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se the actual capital gains before the assessing authority as the quantum of compensation was in dispute. However, we find that this submission does not gain support from the facts of this case. We see that the award was passed by the Collector on March 14, 1962, and the possession of the building was taken only thereafter on April 3, 1962. It is thus clear that before the close of the account year, the Collector had fixed the compensation amount in his award on March 14, 1962, and had also taken possession of the property. Thus it is clear that the assessee was aware of the compensation awarded to him by the Collector in respect of the building acquired. Even assuming that the land acquisition court enhanced the compensation that will not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned counsel is not correct when he says that only s. 147(b) could be invoked when there is a non-disclosure of a transaction. This contention completely overlooks the language adopted in s. 147(a). It contemplates non-disclosure of material facts which has led to the income chargeable to tax having escaped from assessment for that year. It is not possible to construe the expression " material fact " as " income ". Whether the non-disclosure is of a single transaction or of a multiple transaction, the question is, whether those are necessary materials for assessment. We are of the view that the non-disclosure of the factum of acquisition and the amount awarded as compensation in the return submitted before the assessing authority will amo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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