TMI Blog2003 (2) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... the notices issued under section 147(a) of the Income-tax Act, 1961 (for short hereinafter referred to as "the Act"), dated November 17, 1986, for the assessment years 1983-84, 1984-85 and 1985-86, annexures P16, P17 and P18. The reasoning for seeking to re-open the assessment for the years in question and which is communicated to the petitioner along with the impugned notices reads as under: The petitioner is an assessee as defined under section 2(7) of the Act. It is a Hindu undivided family which is being assessed in that capacity by and under the name Kesrimal Bapulal through its karta Kesrimal at all relevant time. During the pendency of this writ, Kesrimal, i.e., the karta of the said Hindu undivided family expired and hence the pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Income-tax (CIT) then invoked the powers conferred under section 263 of the Act and questioned the correctness of the finding recorded by the Assessing Officer, in his order dated October 25, 1982, when he granted benefit to the petitioner of Rs. 1,25,112 on the basis of the alleged family settlement. In the opinion of the Commissioner of Income-tax, the order of the Income-tax Officer was prejudicial to the interests of the Revenue in as much as it wrongly relied upon the alleged family settlement for giving benefit to the petitioner to the extent of Rs. 1,25,112. The petitioner was thus afforded an opportunity of hearing in the suo motu exercise of powers by the Commissioner under section 263 ibid and eventually by order dated October ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rit. Notice of the petition was issued to the respondents. They are served and represented. Heard Shri P.M. Choudhery, learned counsel for the petitioner and Shri A.P. Patankar, learned counsel for the respondent. Having heard learned counsel for the parties and having perused the record of the case, I find no merit in the writ. In my considered opinion, the impugned notices issued under section 147(a) of the Act for making reassessment of the three years in question were rightly issued and hence have to be given effect to. Firstly, it is clear that the assessment for these years had been made under section 143(1) of the Act. In other words, since the Assessing Officer had made assessment of these three years under section 143(1) of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cts of the case or not? The submission of learned counsel for the petitioner was that none of the conditions necessary for invoking section 147(a) ibid are satisfied in this case and hence no notice much less notice under section 147(a) could have been issued. Learned counsel contended that it was not a case of escaped assessment because the assessee had already disclosed the family settlement in the year 1980-81 and the same having been dealt with by the Assessing Officer in its order, referred to supra, no more reference to that document was needed. I do not agree with this submission. It is not a case where by impugned notice, the petitioner is called upon to disclose the document (family settlement). It is, however, a case where a doc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es, the enquiry has got to be made by the Assessing Officer. It then certainly becomes a case of escaped assessment for the years in question so as to invoke the provisions of section 147(a) ibid. The position would have been different if for the three years in question, the Assessing Officer had made regular assessment as contemplated under section 143(3) of the Act and had dealt with this issue after granting an opportunity to the petitioner. But admittedly and as taken note of supra the assessment for the three years in question were not made under section 143(3) ibid but were made under section 143(1) ibid where no enquiry could be made nor contemplated. Learned counsel for the petitioner had placed reliance on Kesharimal Bapulal (HUF ..... X X X X Extracts X X X X X X X X Extracts X X X X
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