9911796707
TMI Blog1996 (7) TMI 171X X X X Extracts X X X X X X X X Extracts X X X X ..... on 3-7-1996, the learned DR raised a legal objection. He contended that the appeals are not maintainable and hence, the Tribunal should dismiss the appeals without hearing the same. Accordingly, a preliminary hearing was given to the representatives of both the sides on the question of maintainability of the appeals alone. 2. The learned DR has stated in this connection that all the assessees under consideration filed their returns of income showing therein considerable amounts of agricultural income mostly for the purpose of explaining certain deposits made by them in banks. He furthermore stated that the agricultural income was returned by the different assessees from the common agricultural operations at Gokul farm by considering the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tating that on the basis of the diary found during the search, the assessments for all the years for all the assessees were reopened and majority of those reopened assessments were completed in March, 1996 by taking into consideration the seized materials as well as certain other evidences gathered. The DR states that in the reassessments, the agricultural income of the assessees has been determined on the basis of proper evidences. The first appeals filed by the assessees against such reassessment proceedings are pending before the CIT(A). The learned DR thus argues that inasmuch as the assessments, the appeals arising from which are before the Tribunal now, have themselves been revised considerably in the reassessments, the present appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... substitute in its place the order made in reassessment proceedings. The initial order of assessment cannot survive in any manner or to any extent. The result of reopening the assessment is that a fresh order of assessment should be made.' (page 46 of reported judgment) 3. The learned DR thus argues that it should be held in view of this particular judgment of the Kerala High Court that once the reassessment proceedings have been initiated and reassessment orders have been passed, the original assessment orders get superseded and thus become infructuous. He thus contends that the appeals against those original assessments should also be considered as having become infructuous. 4. Thereafter, the learned DR has referred to the judgment o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... V. Jaganmohan Rao to the effect that "the previous under assessment is set aside and the whole assessment proceedings started afresh" while certain other High Courts had taken the view that the reassessment is confined only to the escaped assessment and an assessee can put forward pleas only in respect thereof, by relying upon certain other portion of the same judgment of the Supreme Court in the case of V. Jaganmohan Rao as below: "When once since valid proceedings are started under section 34(1)(o), the ITO had not only the jurisdiction, but it was his duty to levy tax on the entire income that had escaped assessment during that year". Ultimately, after discussing the real purport of the judgment in the case of V. Jaganmohan Rao, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the original assessment which had resulted in some positive figures of income. That is why, in the peculiar circumstances of the case the Kerala High Court had come up with the proposition that on completion of the reassessment proceedings, the original assessment proceeding got vacated or set aside. The judgment of the Kerala High Court in that regard, therefore, seems to be relating to the peculiar circumstances of that particular case. 7. Even if it be assumed that the proposition as above had been laid out by the Kerala High Court rather in A general manner, we may find that the said proposition has been impliedly overruled by the Supreme Court in the case of Sun Engg. Works (P.) Ltd.. It is true that the above mentioned Kerala Hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... After taking into account its earlier judgment in the case of V. Jaganmohan Rao, the Supreme Court finally decided in the case of Sun Engg. Works (P.) Ltd.. as below: "It is only the under assessment which is set aside and not the entire assessment when reassessment proceedings are initiated." (page 321 of the reported judgment). Ultimately, the Supreme Court disapproved the broad proposition laid down by the various High Courts in the above mentioned line about the original assessment getting set aside on completion of the reassessment proceeding, including those of the Madras and the Rajasthan High Court in the cases of Standard Motor Products of India Ltd.. and Rangnath Bangur respectively. (at page 322 of the reported judgment) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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