9911796707
TMI Blog1990 (5) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... gs. A copy of the letter dated 10-1-83 addressed to the ITO in the course of the re-assessment proceedings shows that the "new" item in respect of which the claim sought to be made is the interest on the "Export Packing Credit A/c." vis-a-vis the State Bank of Bikaner and Jaipur. The submissions before us are as follows : (i) The aforesaid item of interest on Packing Credit was not claimed during the course of the original assessment proceedings. (ii) The CIT(A) in his appellate order dated 5-10-1984 relating to the re-assessment made by the ITO u/s. 147(b) had by accepting an additional ground directed the ITO to examine the "matter afresh after giving adequate opportunity to the assessee of being heard". The submission is that this deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thority was accepted by the assessee as no further appeal was preferred to the Tribunal. (iv) That the effect of a re-assessment was not to wipe off in entirety the original assessment order. In other words the reopening did not extend to the whole of the assessment. In support of this proposition the learned DR placed reliance on the following two decisions : (i) Hiralal v. CIT [1980] 121 ITR 89 (Raj.) (ii) Nawab Mir Barkat Ali Khan Bahadur v. ITO [1988] 172 ITR 13 (AP). 4. We have examined the rival submissions and have also perused the orders of the tax authorities. In our opinion, the grounds raised in the appeal are misconceived and without any merit. It has been the assessee's case before us that the item "interest on packing cred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oceeding or in the appeal or further appeal filed against the original assessment order, then there could be no prohibition against the assessee raising such a question relating to computation of the amount of tax payable by him, at the time of reassessment or in the appeals against the reassessment order before the AAC or in the Tribunal." The decision of the Rajasthan High Court in the case of Hiralal is on a different point altogether inasmuch as it has been held that "where the ITO validly initiates re-assessment proceedings u/s. 147(a) of the Act in respect of a particular item, he can, during the reassessment proceedings, deal with all items falling under clause (a) or clause (b) of the section though they may not have been dealt wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the course of the original assessment proceedings and after the same had been rejected by the first appellate authority there being no further appeal to the Tribunal. The assessee could not reagitate this claim once again in the course of the reassessment proceedings. In coming to this conclusion we place reliance on the decision of the Rajasthan High Court in the case of Rangnath Bangur which is binding on us. This judgment is based on various decisions of the Hon'ble Supreme Court. 6. We are now left with the question of interpreting the direction of the CIT(A) in his order dt. 5-10-1984 and which pertained to the re-assessment proceedings. According to us the direction was to examine the assessee's claim on merits and which would obv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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