9911796707
TMI Blog1982 (4) TMI 105X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. Kalash One 31.165 34,201.50 Kalash Two 62.340 70.755.90 Kalash One 31.160 34,276.00 Topne One 69.970 79,419.95 Kundi One 79.500 90,252.50 Top One 85.460 96,997.10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 263 and intimated the same to the assessee by his letter dated 30-3-1975. 3. Subsequently, the ITO reopened the assessment under section 147(b) of the Act on 27-3-1980. The reason recorded for reopening the assessment is as below: "27-3-1980 : On scrutiny of the assessee's statement of accounts relevant to assessment year 1975-76 it is seen that the assessee has sold silver utensils for Rs. 4,05,959 which sum has been credited to the capital account of the assessee. In her return, the assessee has not declared any capital gain on this sale nor has he claimed any exemption in this respect in her return. Now in view of the Supreme Court decision in H.H. Maharaja Rana Hemant Singhji v. CIT [1976] 103 ITR 61 holding that silver articles ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sentative for the assessee, urged before us that the revenue authorities erred in their decision. He stated that the nature of the silver utensils were such that they could be used either in the kitchen or on the dining table for day-to-day living purposes and so, they were personal effects. He relied on the decision of the Tribunal in the case of Smt. Ramadevi R. Poddar and also on the decision dated 8-12-1976 in the case of Ramrikhdas Poddar Sons, HUF (IT Appeal No. 2598 (Bom.) of 1975-76). Secondly, he stated that the case of H.H. Maharaja Rana Hemant Singhji was quite different on facts. In that case, the assessee claimed a large amount of gold coins to be personal effects on the ground that they were used for puja on ceremonial occas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to daily use by the assessee, and so they could not be personal effects. He pointed out that the decision of the Supreme Court in the case of H.H. Maharaja Rana Hemant Singhji came after the original assessment was made on 20-11-1975, and that decision constituted "information" for reopening the assessment under section 147(b). Regarding the jurisdiction of the ITO to proceed under section 147(b) on a point already considered and found to be untenable by the Commissioner under section 263, he stated that the Commissioner did not pass any final order on merits. The Commissioner merely proposed to proceed under section 263 but dropped the proceedings for some reasons, which did not mean that the ITO lost his jurisdiction under section 147(b). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in order to complete the record, we may record our comments thereon. It is true that the decision of the Supreme Court in the case of H.H. Maharaja Rana Hemant Singhji came after the original assessment was made. But, the facts of that case were entirely different inasmuch as that case was concerned with the large quantity of gold and silver coins, and was not at all concerned with silver utensils usable in the kitchen or the dining table. Hence, though the said decision may be regarded as an "information" for the purpose of section 147(b), yet, in our opinion, no reasonable man could have entertained a reasonable belief on reading that decision that income had escaped assessment in the instant case. Unless a reasonable belief can be shown ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
