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TMI Blog1982 (1) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... he date of the original assessment made on October 12, 1962 ? (2) Whether, on the facts and in the circumstances of the case, the ITO acted without jurisdiction in initiating proceedings under section 147(b) of the I.T. Act, 1961, for the assessment year 1962-63 ? " Strictly speaking, on the finding recorded by the Tribunal that the ITO, when he made the original assessment for the assessment year 1962-63 in the case of the respondent-trust, had already knowledge that the construction of the terms of the trust placed by the Appellate Asst. Commissioner of Income-tax was contrary to the view which he had taken in the earlier proceeding in the assessment of the individual who was a beneficiary under the trust, both the questions have to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eceivable by the trustees on behalf of Hemant as the sole beneficiary and, therefore, the provisions of s. 41(2) of the Indian I.T. Act, 1922, clearly applied to the entire income. The ITO rejected the plea that the whole income of the trust had to be assessed in the hands of the trustees under the first proviso to s. 41(1). The assessment was made on 12th January, 1959. In the assessment proceedings of the assessee-trust for the same year 1958-59, having regard to the finding recorded in the case of Hemant, the beneficiary, the ITO took the view that no assessment could be made on the trust and the proceedings were dropped. Both these proceedings were before the ITO (Company Circle 1(2)). Following his earlier view for the assessment ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment year 1962-63 that he proposed to reassess the income of the trust which was taken by the ITO as " nil ". 'But this action was also dropped on 15th May, 1965. Eventually on 27th March, 1967, a second notice under S. 148 read with s. 147(b) was issued to the assessee-trust for the assessment year 1962-63 on the ground that the assessment was liable to be reopened in consequence of information received by the ITO that the income of the trust had escaped assessment. Incidentally this notice was also issued by the ITO (Company Circle I(2)). The information relied upon was the order of the AAC dated 17th September, 1966, in the case of Hemant Bhagubhai for the assessment year 1962-63. The ITO rejected the objections of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in consequence of any information received by him but was the result of merely a change of opinion on his part on the same facts. The Tribunal further found that as far back as on 16th January, 1959, the ITO had studied the trust deed dated 6th April, 1944, and taken one view of the matter. The Tribunal also found that on 24th June, 1959, he knew that the AAC had taken a different view and yet he chose to reject the assessee-trust's return on 12th October, 1962. The proceedings were, therefore, held to be invalid. This is how the two questions reproduced earlier have arisen for consideration. The learned counsel appearing on behalf of the Revenue has tried to urge that the order dated 24th June, 1959, was made in proceedings relating to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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