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M/s R.B. Shreeram Durgaprasad Versus The Commissioner of Income Tax

2015 (12) TMI 569 - BOMBAY HIGH COURT

Validity of reassessment proceedings - whether barred by the period of limitation - Held that:- Provisions of Section 149 of the Income Tax Act, 1961 prescribe a limitation of six years at the relevant time. Accordingly, it is not in dispute that the issuance of notice dated 12.1.1965 is within six years of assessment year 1959-60. But the question referred to is about the order of reassessment dated 18.3.1970. We find that the provisions of Section 153 ( 2) at the relevant time prescribed limit .....

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tipulated time limit of four years. As such, it cannot be said that it is barred by limitation. - Decided in favour of the Department.

Penalty under Section 271(1)(c) - Held that:- The order imposing penalty cannot be passed if the appeal against basic order of assessment is pending before the Competent superior Authority. Here, on 24.2.1972 though 1st Appellate Authority had disposed of the appeal, further appeal of assessee before the ITAT was very much pending. The order imposing p .....

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y proceedings could not have been issued before 26.3.1974. - Decided in favour of assessee - Income Tax Reference No. 153 of 1984 - Dated:- 24-11-2015 - B. P. Dharmadhikari And V. M. Deshpande, JJ. For the Petitioner : Mr M. V. Chakranarayan, Official Liquidator and Mr A. G. Pimperkhede, Chartered Accountant For the Respondent : Mr Anand Parchure, Advocate JUDGMENT ( Per B. P. Dharmadhikari, J ) 1. Following two questions are referred to this Court by the Income Tax Appellate Tribunal under Sect .....

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2. We have heard Official Liquidator as the assessee is already ordered to be wound up. Official Liquidator has taken assistance of panel Chartered Accountant M/s A. G. Pimperkhede & Company. We have heard Mr A. G. Pimperkhede, Chartered Accountant and perused brief note submitted by him along with photo copies of precedents. 3. Mr Anand Parchure, learned counsel for respondent submits that basic facts leading to the Reference are not in dispute. The Central Excise Authorities had carried ou .....

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the books of accounts a smaller amount of profits than the real profits. Because of this, a concealed income was discovered and for assessment years 1953-54 to 1958-59, a notice was issued under Section 148 read with Section 147 (a) of the Income Tax Act, 1951. He points out that this notice dated 25.1.1965 was served upon assessee in September 1965 and, therefore, the period of limitation of four years as stipulated under Section 153 (2) (a) of the Income Tax Act, 1961 then in force, expired o .....

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whether the use of the disjunctive or in the notices or communications issued by the Department gives rise to an ambiguity. He, therefore, states that altogether different complexion is now sought to be placed on question no. 2, as referred By pointing out various precedents which deal with technical aspects like recording a satisfaction on concealment etc. He urges that in present matter, ITAT has correctly found that if argument of assessee is accepted, it would lead to absurdity. He also by .....

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rt is in relation to assessment year 1959-60 when the provisions of Income Tax Act, 1922 only were in force. As such, the action taken is without jurisdiction. It is further pointed out that in terms of Section 153 (2) of the Income Tax Act, 1961 the reassessment order after issuance of notice of reopening dated 25.1.1965 has been passed beyond limitation. 6. Without prejudice to this contention, our attention has also been invited to the provisions of Section 275 (1) (a) to urge that against re .....

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61 Act stipulate that any income chargeable to tax had escaped assessment within the meaning of that expression in section 147 and no proceedings under section 34 of the repealed Act i.e. 1922 Act, in respect of any such income are pending at the commencement of this Act, a notice under section 148 of the new Act may, subject to the provisions contained in section 149 or section 150, be issued with respect to that assessment year and all the provisions of the 1961 Act shall apply accordingly. Is .....

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cribed limitation of four years from the end of assessment year in which notice under Section 148 of the Income Tax Act, 1961 is served upon assessee. Here, though notice is dated 25.1.1965, admittedly, it is served on assessee in September 1965 i.e. in financial year 196566 which expired on 31.3.1966. The assessment year for the purposes of Section 153 (2) (a) in present facts , therefore, shall be 196566 only and the order has been passed on 18.3.1970 i.e. before 31.3.1970. It is, therefore, w .....

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Tribunal, after the expiry of period of two years from the end of financial year in which the proceedings, in the course of which action for imposition of penalty has been initiated, are completed or six months from the end of the month in which the order of the Appellate Assistant Commissioner or the Appellate Tribunal is received by the Commissioner, whichever period expires later. In the present facts, it is not in dispute that against the assessment order dated 18.3.1970, the assessee had fi .....

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the fact that addition of ₹ 10 lacs in assessment year 195960 by assessing officer was upheld by 1st Appellate Authority in its order dated 2.3.1971. This addition was also a foundation for penalty proceedings and assessee pleaded that it is not a concealed income before the Authority in penalty proceedings. Though the Authority did not accept it, later on the ITAT vide its order dated 26.3.1974 deleted that addition. With the result the submission is, had the penalty imposing authority aw .....

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assessment year 1954-55 given specific instances of suppression of receipts. Absence of such finding in addition to assessment year 1959-60, was brushed aside by pointing out the specific instances which were relevant for the assessment year 195455. The grievance about addition of ₹ 10 lacs has also been similarly overlooked in paragraph 9 of the penalty order. 12. We have perused paragraphs 6, 9 and 10 of the penalty order. In the light of question referred to us, we have to appreciate t .....

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