TMI Blog2013 (9) TMI 755X X X X Extracts X X X X X X X X Extracts X X X X ..... in proceedings under Section 155 of the Act - Income Tax Reference No. - 10 of 1993 - - - Dated:- 9-9-2013 - Hon'ble Sunil Ambwani And Hon'ble Surya Prakash Kesarwani,JJ. For the Applicant : B. Agarwal,A. Kumar,A.N. Mahajan,D. Awasthi,G. Krishna,R.K.Upadhyay,S. Chopra ORDER We have heard Shri R.K. Upadhyay appearing for the income tax department. No one appears for the assessee. In this reference made by the Commissioner of Income Tax, Kanpur arising out of order of the Income Tax Appellate Tribunal for the assessment year 1980-81 in ITA No.1371 (Alld) of 1989 being Reference No.93 (Alld) of 1992 following question of law has been referred for consideration of the Court:- "Whether on the facts and in the circumstances ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of the later assessment, original assessment under Section 143 (1) did not survive. Shri R.K. Upadhyay appearing for the income tax department submits that the question of law is covered by the judgment of the Supreme Court in Chatturam Horilram Ltd. v. CIT, (1955) 2 SCR 290 in which it was held as follows:- "For the purpose of the present case it appears to us sufficient to say that, where earlier assessment proceedings had in fact been taken but failed to result in a valid assessment owing to some lacuna other than that attributable to the assessing authorities, notwithstanding the chargeability of income to the tax, it would be a case of chargeable income escaping assessment and not a case of mere non-assessment of income tax. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment of the firm or any reduction or enhancement made in the income of the firm under Section 154, 250, 254, 260, 262, 263 or 264 or of any order passed under sub-section (4) of Section 245D on an application made by the firm, that the share of the partner in the income of the firm has not been included in the assessment of the partner or if included is not correct. The orders under Section 155 have been passed after the assessment was framed. Once the assessment under Section 143 (3) (b) has been framed and was subsequently set aside by the appellate authority, it cannot be said that there was any completed assessment and thus any income escaping assessment can be subject to tax in proceedings under Section 155 of the Act. The qu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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