9911796707
TMI Blog1998 (12) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... ar ended March 31, 1962, and deposited the same in the bank as under: Rs. 24-3-1962 1,47,307.56 30-3-1962 2,89,240.00 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aim of the assessee that the lands were agricultural lands. The officer has also noticed the fact that the assessee has not brought to his attention that there was partition in the family and no order under section 171 of the Income-tax Act, 1961, was passed. The above facts are noticed from the order of assessment passed for the assessment year 1967-68. The same pattern of assessment was adopted by the Income-tax Officer in the subsequent assessment orders as well. The Income-tax Officer in the original assessments made by him included only the interest income arising out of the deposits standing in the name of the karta of the family, but did not include the interest income said to have accrued on the deposits standing in the name of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e particulars at the time of the original assessment. The Income-tax Officer, however. rejected the objections raised by the assessee on the ground that since an order under section 171 of the Income-tax Act was not passed recognising the partial partition between the karta of the Hindu undivided family, viz., P.R. Sriramulu Naidu and P.S. Sridharan, the entire interest income is liable to be taken into account as the income of the assessee and the non-disclosure of the interest was a non-disclosure of the primary facts leading to escapements of income. Thus, he reopened the assessment and estimated the interest on the compensation and assessed the entire income under the head "Other sources" and he completed the reassessments for the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment on the capital gains arising on the acquisition of the property. The Tribunal, therefore, held that the action of the officer in reopening the assessment under section 147(a) of the Act was not valid and upheld the view of the Appellate Assistant Commissioner on this aspect. The Tribunal also went into the question of the merits of the case and held that partial partition need not be recognised by the Income-tax Officer by passing an order under section 171 of the Act and, therefore, it held that the entire amount of interest cannot be assessed in the assessee's hands. It is against this order of the Appellate Tribunal on an application by the Revenue, the following two questions of law have been referred to us for our consideratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the decision of the Supreme Court in Kalloo mal Tapeswari Prasad (HUF) v. CIT [1982] 133 ITR 690, wherein the Supreme Court held that unless there is an order passed under section 171 of the Income-tax Act recognising the partial partition, the income which was the subject-matter of the partial partition could be included in the hands of the bigger Hindu undivided family and the view of the Appellate Assistant Commissioner that even without an order passed under section 171 of the Income-tax Act the income cannot be assessed in the hands of the assessee is not correct in law. Mr. V. Ramachandran, learned counsel for the assessee, submitted that the Tribunal has recorded a clear finding to the effect that the assessee has disclosed true a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng by the Appellate Tribunal, it is not possible to hold that the assessee has failed to disclose full and true material particulars relating to his assessment at the time of completion of the original assessment. We are of the view that the finding of the Appellate Tribunal that there was a full and true disclosure of material facts at the time of the original assessment is a finding of fact and that the Appellate Tribunal arrived at the finding on the basis of the material on record. It is also relevant to note that the Appellate Assistant Commissioner had perused the records and after the perusal of the records he came to the conclusion that the assessee had disclosed all primary facts at the stage of assessment of income chargeable to c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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