9911796707
TMI Blog1984 (8) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... 2-1982, informed the IAC that there had been suppression of profit of about Rs. 45 lakhs over a period covering the assessment years 1967-68 to 1978-79. On the basis of the said letter, the IAC initiated proceedings under section 147(a) of the Act and issued notices under section 148 of the Act, in response to which the assessee filed returns. In the course of the reassessment proceedings, the assessee had filed statement showing the income escaped. The assessee, however, claimed depreciation and deduction under section 35B, in the reassessment proceedings, which were not claimed by it in the original assessments. The IAC negatived these claims of the assessee keeping in view the decision in the case of Kevaldas Ranchhodas v. CIT [1968] 68 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... once an assessment is reopened, notice is given for a fresh return of all the items. Reference was made to the decision of the Calcutta High Court in the case of Sun Engg. Works (P.) Ltd. v. CIT [1978] 111 ITR 166 and it was claimed that the decision of the Calcutta High Court completely covered the assessee's case and, therefore, the IAC was wrong in not allowing the deductions claimed by the assessee in the reassessment proceedings. 4. Against the said consolidated order of the Commissioner (Appeals), the revenue has preferred these present appeals before us. It was contended by the learned departmental representative that a reassessment proceeding is for making a supplement assessment and the subject-matter of the reassessment proceedi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was entitled to claim for a deduction in the reassessment proceedings which was not claimed in the original assessment. In short, the learned departmental representative contended that at the time of reassessment, it cannot be open to the assessee to seek reduction of any income originally assessed but not contested by the assessee and that the assessee can merely raise his objection regarding those items which are being brought to tax in the reassessment proceedings and also to the question arising as a result of the adjustment and the originally assessed income and the escaped income reassessed. Referring to the decision on sales tax, it was submitted by the learned departmental representative that under the Sales Tax Laws the object is t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T 4 ITC 447, wherein it has been held that once it is found that income has escaped assessment, the assessee cannot resist proceedings to assess it merely by showing that income, profit or gains had been assessed at a too high figure. 5. The learned counsel for the assessee, on the other hand, strongly supported the order of the Commissioner (Appeals). He also reiterated the same contentions as were advanced before the Commissioner (Appeals) and placed reliance on the cases already cited before the Commissioner (Appeals). 6. We have heard the rival submissions, perused the records and the cases cited before us by the parties. The main question for consideration in these appeals is whether the initiation of proceedings under section 147 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claim that the particular item of income should be excluded or reduced, though be might not have objected to it in the original proceedings. It is also likely that in the original assessment proceedings, some matter may come up in appeal even before the High Court and the matter might have been decided against the assessee. In the reassessment proceedings, the assessee cannot again claim that the matter should be considered in his favour, though it had become conclusive in the original proceedings. This view has also been taken by the Calcutta High Court in the case of Satyendra Mohen Roy Choudhury. Hence, in our opinion, the initiation of the reassessment proceedings wipes out the original assessment only to the extent that apart from the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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