9911796707
TMI Blog1978 (6) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... sst. yr. 1964-65, the Appellate Commissioner deleted the said addition as he found that the investment had been made on 2nd August, 1962 which date, fell in the preceding accounting period ended on 26th Oct., 1962 relevant to the asst. yr. 1963-64 and not in the accounting period relevant to the asst. yr. 1964-65. The AAC also observed in his appellate order dt. 9th Nov., 1970 for the asst. yr. 1964-65 that "the ITO will be at liberty to consider its assessment in 1963-64 as per law. For the asst. yr. 1963-64, the assessee had filed the original return of income on 4th July, 1964 showing a total income of Rs. 32,970. On 29th July, 1964, the assessee had filed a revised return for the same year showing the same total income of Rs. 32,970, b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and included the same in the total income of the assessee as income from other sources, the reassessment order having been made on 19th Aug., 1974. 3. The AAC had held that as the assessee had not mentioned the fact of the aforesaid investment in the original return filed on 4th July, 1964 and as the assessee had not given any reasons for filing the revised return on 29th July, 1964 mentioning therein the fact of investment in the aforesaid shares, reassessment proceedings initiated by the ITO under s. 148 r/w s. 147(a) were valid. The AAC has also sustained the addition of Rs. 30,000 on merits. 4. We have heard the learned counsel for the assessee and the learned Departmental Representative. It is submitted on behalf of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome earlier returned and since in the present case the same total income was disclosed in the revised return as in the original return, such a revised return was not a valid return. It is submitted on behalf of the Department that the said revised return was, therefore, rightly ignored by the ITO and there being no such valid revised return on record, the ITO was right in reopening the assessment proceedings under s. 147(a) r/w s. 148 of the Act. 5. We are of the opinion that the assessee's case is well founded and the stand taken by the Revenue is mis-conceived. s. 139(5) provides for furnishing of a revised return at any time before the assessment is made wherever the assessee discovers any omission or any wrong statement in the orig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... note in such original assessment order about the assessee having filed a revised return on 29th July, 64. The assessee had duly disclosed the fact regarding the investment of the aforesaid sum of Rs. 30,000 in the purchase of shares in sec. F of Part I of the revised return dt. 29th July, 64 and the assessee was under no obligation to inform the ITO about the possible inferences that may be raised against him in this regard, as held by the Supreme Court in 79 ITR 609. The material facts in this regard were duly disclosed by him in the revised return and that being so, it could not be said that there was failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment for the asst. yr. 1963-64 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t because of the failure of the assessee to disclose fully and truly all material facts. The present was not such a case of failure on the part of the assessee to disclose fully and truly material facts necessary for the assessment and the assessment could not be reopened in such circumstances under s. 147(a) r/w s. 148 of the Act as observed in 106 ITR 1 (SC). The facts of the present case also analogous to the facts in 100 ITR 1 (SC). As observed therein, after the disclosure by the assessee of the primary facts of investment in shares as indicated in the revised return filed on 29th July, 1964, it was for the ITO to make necessary enquiries and adopt proper inferences as to whether the amount of such investment represented the income of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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