9911796707
TMI Blog1981 (2) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... t time practising as pleader in Meerut courts and had his residence both at Delhi and Meerut, purchased a portion of agricultural land near village Mauza Malikpur Chhaoni on Karnal Road, Delhi. Another portion of the agricultural land near the said village was purchased by Shri Girdhari Lal, another practising lawyer, in or about the year 1908. After the death of Munshi Tulsi Dhar, the said lands owned by him were inherited by his sons, Shri Salig Ram, Shri Raghbar Dayal and Shri Pannu Lal. Thereafter, upon partition of the family property between the three brothers, Shri Salig Ram received a portion of the said agricultural lands in Mauza Malikpur Chhaoni as his share in the property inherited from his father and continued to use the lands ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4, the previous year being the year ending March 31, 1953, Shri Suraj Narain received a sum of Rs. 28,828-11-9. Shri Suraj Narain filed a return of his total income and in the statement accompanying the return a note was made to the effect that he had also owned lands and garden in Mauza Malikpur as inherited as an ancestral property. But those were agricultural lands and garden and they were not taxable. It was also mentioned that some of those lands had been sold during that year. A certificate received from D.L.F. regarding the payment of Rs. 28,828-11-9 received during the previous year was submitted. A copy of the agreement dated July 22, 1949, was also submitted. The ITO who was then dealing with the case issued a notice under s. 23(3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s grandfather purchased this land some time during 1875-80. The assessee holds 1/6th share in it. The land has so far been put to agricultural use. He further states that all his life he has been practising as a Barrister-at-Law and was a Government servant working as Government Pleader and public prosecutor in the Delhi Province and that he has never done any kind of real estate business as he was not allowed to indulge in such activity when he was a Government servant nor being entitled to do so as a Bar-at-law. He points out that he merely converted his possession into cash which cannot amount to any business activity. " Allegations have been made in the writ petition that for the assessment years 1955-56, 1956-57 and 1957-58, similar r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al and others, " F " Block, Connaught Place, New Delhi. The notice is identical with the impugned notices except the year of assessment and the date of issue. The petitioners filed a writ petition under arts. 226 and 227 of the Constitution of India in this court praying for the issue of a writ or direction in the nature of certiorari and/or calling for the records in the case and quashing the notice and a writ order or direction in the nature of mandamus and/or prohibition and/or otherwise directing the respondents not to make any assessment in pursuance of the notice. That writ petition was dismissed in limine by the Circuit Bench of the Punjab High Court on May 24, 1963. An appeal was preferred by special leave from the judgment and orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly all material facts. The duty of disclosing all the primary facts relevant to the decision of the question before the assessing authority lies on the assessee. The law is settled by the Supreme Court in various decisions including Calcutta Discount Co. Ltd. v. ITO [1961] 41 ITR 191, that in every assessment proceeding the assessing authority would for the purpose of computing or determining the proper tax due from an assessee, require to know all the facts which would help him in coming to a correct conclusion. From the primary facts in his possession, whether on disclosure by the assessee, or discovered by the assessing authority on the basis of the facts disclosed or otherwise, the assessing authority has to draw inferences as regards c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sclosing that some of the agricultural lands in Mauza Malikpur inherited by the assessee had been sold during the previous year and the certificate of payment received from D.L.F. during the previous year, relevant for each assessment year. The assessee has the duty to make a true disclosure of facts and this has been discharged in these cases. The assessee did not disclose anything which did not represent true facts and thus there was no attempt to mislead the assessing authority. If the assessing authority fails to draw a correct inference from the primary facts disclosed, then the assessee is not responsible, for, the assessee is under no obligation to advise the ITO to draw the correct inference. A distinction has to be drawn between th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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