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2021 (2) TMI 105 - HC - Income TaxReopening of assessment u/s 147 - partnership firm failed to file its return of income for the relevant year - Purchase of immovable property - HELD THAT:- In the instant case, originally, the assessee filed his return in Form ITR-4 wherein the disclosure of investment is not requires to be disclosed as writ applicant had disclosed his income on presumptive basis under Section 44AD of the Act and his assessment was completed accordingly for the relevant assessment year. We are of the view that the writ applicant was was not obliged to furnish any information as regards the partnership firm or the investment if any in the partnership firm. This issue, according to us, is not, at all, germane for the purpose of Section 148 of the Act. The observations made by the Supreme Court [1969 (2) TMI 16 - SUPREME COURT] clearly make out that while filing a return an assessee is not bound or obliged to disclose any information in relation to any fact other than what is required to be supplied and furnished by him in the various columns of the prescribed form of return of income or which he is bound under the provisions of the Act to furnish even though that fact may otherwise be relevant for the purpose of his assessment. For the simple reason that such information has not been furnished in the return it would not mean that the assessee had failed or omitted to disclose fully and truly all material facts which are necessary for the purpose of his assessment. There is no escapement of income chargeable to tax. The conditions precedent for resorting to reassessment under Section 147 of the Act are not satisfied in the present case. Just because the partnership firm failed to file its return of income for the relevant year, by itself, will not confer jurisdiction upon the authority concerned to issue notice against the individual partners of the firm with respect to their individual return of income for the relevant year in consideration. Reassessment permissible under sub-section (1) of section 150 - The entire object of Section 150 (2) is to bar the proceedings under Sub-Section (1) in the matter of assessment/re-assessment or re-computation, which has become the subject matter of the reference or revision by reason of any other provisions limiting the time limit. Section 150 (1) provides that the power to issue notice under Section 148 in consequence of or giving effect to any finding or direction of the Appellate/Revisional Authority or the Court, is subject to the provision contained in Section 150(2), which provides that directions under Section 150(1) cannot be given by the Appellate/Revisional Authority or the Court if on the date on which the order impugned in the appeal/revision was passed, the re-assessment proceedings had become time barred. As per section 150(2), the Appellate Authority could give directions for the re-assessment only in respect of an assessment year, which was within the limitation stipulated under Section 148 in respect of which re-assessment proceedings could be initiated on the date of passing of order under appeal. The argument canvassed on behalf of the Revenue that this Court may permit the Department to invoke Section 150 of the Act for the purpose of proceeding against the partnership firm for the relevant year is not at all palatable or rather sustainable in law.
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