9911796707
TMI Blog2001 (11) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... aside a communication dated October 25, 2000 (annexure PK), and by directing the respondent-authorities to issue a certificate compounding the cases pending in the court of the Chief Judicial Magistrate, Shimla, and prohibiting them from prosecuting the petitioner for any offence for the assessment years 1979-80, 1980-81, 1981-82 and 1982-83. Other reliefs have also been claimed. The case of the petitioner was that he received summons from the court of the Chief Judicial Magistrate, Shimla, stating therein that proceedings have been initiated against him by the respondents for the above assessment years for commission of certain offences under the Income-tax Act, 1961 (hereinafter referred to as "the Act"). It is stated by the petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be concealed: 56,020 Amount of tax on it at 60 per cent. 33,612 Compounding fee payable: (at 100 per cent.) 33,612 ------------------------------------------------------------------------ Assessment year: 1981-82: ------------------------------------------------------------------------ Income declared in the original return: 26,270 Income assessed after appeal effect: 92,630 Income sought to be concealed: 66,410 Amount of tax on it calculated at 60 per cent. 39,346 ------------------------------------------------------------------------ Assessment year: 1982-83: ------------------------------------------------------------------------ Income declared in the original return loss(-) 5,650 Income assessed after appeal effect: 90,3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en the parties that the said amount had already been paid by the petitioner. According to the petitioner, thereafter, nothing was required to be done in the matter. Unfortunately, however, the authorities issued a communication on October 25, 2000 (impugned in the present petition at annexure PK). The said communication, by the Income-tax Officer, Ward No. 4, Shimla, stated that the compounding charges had not been correctly calculated in the letter dated March 18, 1999. As in the case of the petitioner, the "total concealed income" exceeded Rs.1 lakh, the compounding fee payable by him would be more than the said amount and as such he was liable to pay Rs.3,51,304. The case, therefore, could not have been compounded and accordingly proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es not ordinarily operate as res judicata in respect of the matter decided in any subsequent year, for the Assessing Officer is not a court and he is not precluded from arriving at a conclusion inconsistent, with his conclusion in another year. It is open to the Income-tax Officer, therefore, to depart from his decision in subsequent years, since the assessment is final and conclusive between the parties only in relation to the assessment for the particular year for which it is made. A decision reached in one year would be a cogent factor in the determination of a similar question in a following year, but ordinarily there is no bar against the investigation by the Income-tax Officer of the same facts on which a decision in respect of an ear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 (SC). It is no doubt true that if a question of law has been decided independent of the assessment year such as, the constitutional validity or vires of an Act, such a decision would operate as res judicata even in future litigation and cannot be challenged (vide Amalgamated Coalfields Ltd. v. Janapada Sabha Chhindwara, AIR 1964 SC 1013). But, so far as the assessment years are concerned, it is well settled that each assessment year is an independent unit. In these circumstances, in our opinion, the contention raised by learned counsel for the petitioner that when the concealed amount did not exceed Rs.1 lakh in any assessment year, each assessment year must be taken as an independent and separate unit and could not have been consolid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... delines dated October 20, 1995, would not apply to the cases on hand, inasmuch as, in none of the assessment years 1979-80, 1980-81, 1981-82 and 1982-83, the concealed amount, reached Rs.1 lakh. The petitions, hence, deserve to be allowed. Alternatively, it was submitted that even if two interpretations are possible, the one which favours the assessee (petitioner) will be accepted and not the one which would favour the Revenue (respondents). We need not go into that question as, in our opinion, the law has been settled by the Supreme Court. For the aforesaid reasons, all the petitions deserve to be allowed and are hereby allowed. The impugned communication at annexure PK dated October 25, 2000, is hereby quashed and set aside. It goes wit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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