TMI Blog1971 (4) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... lem, from proceeding with the reassessment proceedings for the assessment year 1961-62 initiated by him in pursuance of the notices dated April 25, 1968, issued under section 148 of the Income-tax Act. Each of the petitioners filed his return of income for the assessment year 1961-62, that is, for the previous year ended April 12, 1961, and the said return of income was accompanied by statement of creditors which included the borrowal of Rs. 10,000 from Seth Vasumul Lalchand, Madras, and also a claim of Rs. 305 towards the interest payment said to have been made to the said banker on the said borrowing of Rs. 10,000. The Income-tax Officer completed the assessment in each of these cases for the assessment year 1961-62 on November 28, 1962, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome-tax Act are impugned in these writ petitions. Though various contentions have been raised in the affidavit of the petitioners, the only contention that was urged before us was that the Income-tax Officer had no jurisdiction to bring to charge the said sum of Rs. 10,000 in the assessment year 1961-62, that is, for the year ended on April 12, 1961. According to the petitioners their borrowal of Rs. 10,000 was shown on April 12, 1961, that is after March 31, 1961, that under the provisions of the Indian Income-tax Act, 1922, for income from undisclosed sources, the previous year is the financial year ended 31st March, that since the petitioner's borrowal was on April 12, 1961, the same, even if it is treated as an income from undisclos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... further credit of Rs. 10,000 for the assessment year 1962-63 may be added and assessed as their respective taxable income. Presumably, they came forward with this voluntary disclosure to avoid penalty. On the basis of the aforesaid disclosure made by the petitioners, the Income-tax Officer completed the assessment for 1962-63 in both the cases adding Rs. 10,000 in each assessment as income from undisclosed sources. The petitioner, however, successfully urged before the Appellate Assistant Commissioner that the sum of Rs. 10,000 added as income from undisclosed sources cannot be assessed in the assessment year 1962-63. Therefore, the Income-tax Officer felt that credit of Rs. 20,000 disclosed by the assessees was a non-genuine borrowing for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome and brought to tax. Therefore, the only question is as to whether the said undisclosed incomes are to be assessed in the year 1962-63 or in the earlier years. The Income-tax Officer originally proceeded to assess the sum during the assessment year 1962-63, for the disclosures were made only in that year. The petitioners have chosen to challenge that assessment on the ground that the sums of Rs. 10,000 each, even if they are treated as income from undisclosed sources, cannot be brought to tax during the assessment year 1962-63. The petitioners, though they admitted the sums of Rs. 10,000 each to be their income, have not specifically stated as to when and in what year the income was earned though it is a matter exclusively within their ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to prevent such consequences and that the existence of an alternative remedy is not, however, always a sufficient reason for refusing a party quick relief by a writ or order prohibiting an authority acting without jurisdiction from continuing such action. But, as pointed out by their Lordships of the Supreme Court in that case, if there were in fact some reasonable grounds for thinking that there had been any non-disclosure as regards any primary fact, it would have a material bearing on the question of under-assessment and that would be sufficient to give jurisdiction to the Income-tax Officer to issue a notice under section 148 and whether those grounds were adequate or not for arriving at a conclusion that there was a non-disclosure of m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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