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TMI Blog1971 (4) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 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, accepting the income returned by the petitioners. Later, for the assessment year 1962-63, that is, for the previous year ended on April 13, 1962, each of the petitioners ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 undisclosed sources, cannot be considered for the assessment year 1961-62 in view of the decision in Commissioner of Income-tax v. P. Darolia & Sons and, therefore, the Income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y 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 the year ended April 12, 1961, relevant to the assessment year 1961-62, and proposed to reopen the assessment for the year 1961-62 after getting the sanction of the Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me-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 knowledge. The petitioners' contention that the Income-tax Officer had no jurisdiction to initiate reassessment proceedings in the petitioners' cases for the assessment yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 material facts would not be open for the court's investigation. The petitioners who want the court to hold that the Income-tax Officer has no jurisdiction to invoke section 14 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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