9911796707
TMI Blog1986 (8) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... ment year 1976-77. According to the assessee it was denied the claim of deduction in the assessment year 1976-77 on the ground that it was allowable in the assessment year 1975-76, the ITO had since reopened the proceedings for the assessment year 1975-76 for reassessment it got an opportunity to make the claim of deduction in the assessment year 1975-76, but the ITO did not consider the same. 2. The Commissioner (Appeals) dismissed the appeal of the assessee. He observed that the reassessment proceedings under section 147(a) were initiated by the ITO on the ground that the profit arising out of sale of trailers had escaped assessment. He further observed that the deduction of the expenses claimed at the reassessment stage was not claimed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3, the Hon'ble Rajasthan High Court reached the following conclusion in the case of Rangnath Bangur : "Thus, reassessment proceedings cannot be confined only to such income which has escaped assessment, but the entire assessment proceedings are set at large and are reopened and the earlier order of assessment is set aside or wiped out and substituted by the order passed upon reassessment. Once the reassessment proceedings are initiated, the assessing authority has to redetermine afresh the total income of the assessee as also the total sum payable by him as tax under the Act. We may not be understood as holding that the questions which were expressly raised and decided during the assessment proceedings or in the appeals from the original a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sive in the matter...." 8. These observations have been made by the Hon'ble Supreme Court in a case in which deduction of liability on account of sales tax was in question. It has been, therefore, contended by the learned departmental representative that the said observations of the Hon'ble Supreme Court are applicable only in the case of statutory liability and not in the case of contractual liability. He further contended that a contractual liability is allowable only when it becomes an agreed or admitted liability. There cannot be any dispute that there is distinction between the statutory liability on the one hand and contractual liability on the other; but the observations of the Hon'ble Supreme Court in the case of Kedarnath Jute Mfg ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
