9911796707
TMI Blog1967 (2) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... interfere. Pandit Deo Sharma, elder brother of the petitioner, was a working partner in the firm Messrs. L. N. Gadodia Cawnpore Cotton Mills Agency, which had been appointed as the sole selling agent of the Cawnpore Cotton Mills, Kanpur. As a working partner he was entitled to a one-fourth share in the profits of the firm. Pandit Deo Sharma was also employed to manage a retail cloth shop of the Cawnpore Cotton Mills and was paid a one-fourth share in the net profits accruing to the retail shop. On November 14, 1942, Pandit Deo Sharma and the petitioner entered into an agreement under which the petitioner undertook to look after the work of the two businesses, the partnership firm and the retail cloth shop, and in consideration therefor he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeals were dismissed. He then proceeded in appeal to the Tribunal, but while filing an appeal in respect of the assessment years 1944-45 and 1945-46, he did not file any appeal in respect of the assessment year 1946-47. When the two appeals were called on for hearing before the Tribunal, the petitioner applied for adjournment, but the Tribunal refused to adjourn the appeals and dismissed them. After the assessment had been made against the petitioner by the Income-tax Officer, proceedings were taken for recovery of the tax assessed thereby but it seems that, subsequently, the Income-tax Officer requested the Collector to stay the recovery proceedings because " the assessment was made in this case as a protective measure in order to safeg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner mentioned in his earlier order. Unfortunately for the petitioner the Commissioner now took a different view of the matter and dismissed the revision application by his order dated April 3, 1965, on the ground that, as a final order had been made under section 33A(2), he could not pass another order in revision on a point which had already been covered by the earlier order in revision. The petitioner contends that the Commissioner was bound to decide his second revision application on the merits when it had been made because of the observation of the Commissioner in the order disposing of the earlier revision application, which, specifically stated that if the assessment of Pandit Deo Sharma was confirmed as a result of the decisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted a mistake in treating a certain receipt as taxable. The mere circumstance that he has shown that receipt as income in his return does not make him liable to tax thereon. An assessee is liable to tax only upon such receipt as can be included in his total income and is assessable under the Income-tax Act. The law empowers the Income-tax Officer to assess the income of an assessee and determine the tax payable thereon. In doing so, he may proceed on the basis that, where an assessee discloses that a certain sum of money has been received by him, the fact of that receipt may be accepted without any thing more as constituting an admission on the part of the assessee. That would be an admission as to a state of fact. But whether the receipt c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... parent that the Commissioner had no power to interfere with the assessments for the assessment years 1944-45 and 1945-46. In respect of the assessment year 1946-47, however, no appeal having been filed to the Tribunal, it was open to the Commissioner to interfere in the exercise of his revisional jurisdiction. Consequently, his order dated October 11, 1957, on the revision application for the assessment year 1946-47 is liable to be quashed. The next contention of the petitioner is that there can be no recovery of the tax because the assessments were made as a protective measure. Now, in the first place, the assessments do not disclose that they were made for the purpose of protecting the interests of the revenue in case the assessments aga ..... X X X X Extracts X X X X X X X X Extracts X X X X
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