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2010 (4) TMI 445 - HC - Income TaxReassessment- Income Escaping assessment - The assessee firm was engaged I the business of gold and silver ornament apart from trading business the also did job work. During a search a block assessment was made under section 158BC of the Act for the period commencing from April 1 1987 to November 3 1996 and undisclosed income was determined for the assessment year 1996-97 and part of the assessment year 1997-98. Tribunal allows the appeal of the assessee holding that the amount was not undisclosed income. After this reopen the case under section 148. Tribunal having set aside the block assessment these amount were to be treated as having escaped assessment in the assessee’s hand. Held that- once the Tribunal had arrived at the conclusion that the amounts were not undisclosed income. Once the Tribunal had arrived at the conclusion that the amounts were not undisclosed income, they could not be treated as income chargeable to tax under the provision of section 147 of the Act. It was not open to the assessing authority to circumvent the order of the Tribunal and to take a different view. The order of the Tribunal was binding on the assessing authority. Therefore, initiation of proceedings u/s 14 read with section 148 of the Act for the assessment year 1996-97 and 1997-98 was barred, erroneous and bad in law.
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