9911796707
TMI Blog1982 (7) TMI 136X X X X Extracts X X X X X X X X Extracts X X X X ..... disbursement were examined and the result enclosed in a separate sheet. Later on, the assessment was reopened under s. 147(a) of the IT Act, 1961 on the reasons recorded by the ITO as given below: "A hundi loan of Rs. 50,000 was shown by the assessee on 26/27th Feb., 1957 in the name of Seth Rupchand Pahalajrai. The alleged loan falls in the accounting year relevant for the asst. yr. 1957-58. on enquiry no clue of the party was found and no Income-tax file No. was furnished by the assessee. On examination it was found that the said loan was advanced by two cheques of Rs. 25,000 each on 26th Feb., 1957 and 27th Feb., 1957 on the British Bank of Middle East, Calcutta and on the United Bank of India, Calcutta respectively. It is found from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat Street, Calcutta. According to the ld. counsel, the assessee had disclosed the loan at the time of the original assessment in his statement of accounts. He said that the ITO after looking into the matter had accepted the loan as genuine and completed the assessment. Since all the primary facts were disclosed at the time of the original assessment, the reassessment proceedings were initiated by the ITO only on the basis of a change of opinion. In this connection reference was made to the order of the Tribunal, F-Bench, in the assessee's own case for the asst. yrs. 1958-59 to 1960-61 wherein the Tribunal had made certain observations about genuineness of this loan and in respect of the asst. yr. 1958-59, it held that the loan of Rs. 50,00 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sh the credit-worthiness of the loan creditor. He thus upheld the addition of Rs. 50,000. 5. Before us, it was contended by the ld. counsel for the assessee that the proceedings under s. 147(a) were not in accordance with law inasmuch as there was no question of omission or failure on the part of the assessee to disclose fully and truly, during the original assessment proceedings, all material facts necessary for the assessment for the year under consideration. He took us through the detailed statement of the assessee's receipt and disbursement during the year showing loan of Rs. 50,000 from Seth Roopchand Pahalajrai as also advancing loan of Rs. 1,50,000 to Shri N.D. Kanaiyalal and the bank statements showing the said loan transactions. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of Premier Suppliers (P) Ltd. in ITA No. 1173/Cal 77-78 wherein, under similar circumstances, the validity of the proceedings under s. 147(a) was upheld. The ld. counsel for the assessee, in reply, contended that in the case of East Coast Commercial Co. Ltd. vs. ITO Ors. (1981)128 ITR 326 352 (Cal) at the Calcutta High Court criticised the judgment of that High Court in H.A. Nanji Co. 6. We have considered the rival submissions and the facts, and are of the opinion that proceedings under s. 147(a) in the present case were void. It is well-settled that the ITO will have no power to reopen an assessment under s. 147(a) unless both the requisite conditions, viz., omission or failure on the part of the assessee to disclose fully ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
