1975 (12) TMI 144 - SC - Income Tax

Applicability of Section 171, Sub-section (6) of the Income Tax Act, 1961 - enactment of Sub-sections (6) and (7) of Section 171 of the new Act - argument of the Revenue Authorities that when notices u/s 148 were issued for reopening the assessments of the Hindu Undivided Family, all the provisions of the new Act became applicable and they included Sub-sections (6) of Section 171 and, therefore, that Sub-section was applicable for recovery of the tax reassessed on the Hindu Undivided Family pursuant to the notices under Section 148 - Held that:- Appeal allowed. The argument f revenue is without force as it is based on a misconstruction of the words "all the provisions of this Act shall apply accordingly" in Clause (ii) of Section 297(2)(d). These words merely refer to the machinery provided in the new Act for the assessment of the escaped income. They do not import any substantive provisions of the new Act which create rights or liabilities. The word 'accordingly' in the context means nothing more than "for the purpose of assessment" and it clearly suggests that the provisions of the new Act which are made applicable are those relating to the machinery of assessment. The words "all the provisions of this Act shall apply accordingly" cannot therefore be construed as incorporating by reference Sub-section (6) of Section 171 so as to make it applicable for recovery of the tax reassessed on the Hindu Undivided Family in cases falling within Clause (ii) of Section 297(2)(d). This contention of the Revenue Authorities must accordingly be rejected.