TMI Blog1998 (9) TMI 73X X X X Extracts X X X X X X X X Extracts X X X X ..... meaning of section 147 of the said Act. Xerox copies of the notices have been enclosed as annexure-5 to the writ petitions. The petitioners are the minor sons of one Jagdeo Pandey. At the relevant time, he was a partner of Sachdeva and Company, Dhanbad. While completing his assessment for the year 1988-89 on March 30, 1989, he made certain additions, as detailed below, which his Assessing Officer had tried to explain in the hands of his minor sons, i.e., the petitioners herein. The amount was also added in the hands of the firm as protective assessment on the ground that the onus to prove the genuineness of the loans had not been discharged by it. The amount pertaining to Saurabh Kumar Pandey (CWJC No. 2828 of 1991-R) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ments said to have been made by the petitioners in the business of the father, however, was set aside on the ground that the assessment of the minor sons, i.e., the petitioners, had already been completed and their investments had been accepted by the Department; and the father, therefore, could not be assessed twice for the same amount. Jagdeo Pandey thereafter filed an application before the Deputy Commissioner of Income-tax, Dhanbad Range, under section 144A of the Act, who issued certain directions to the concerned Assessing Officer. In the light of the said orders, the assessment was completed on March 27, 1991. Jagdeo Pandey again preferred appeal before the Commissioner of Income-tax (Appeals), Jamshedpur, vide Income-tax Appeal No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing Officer (of the petitioners) to take necessary action under section 263 of the Act, vide his letter No. 824, dated July 25, 1990, but instead of taking any such action, the Assessing Officer issued notice under section 148. The decision in the case of Simon Carves Ltd. [1976] 105 ITR 212 (SC), is of no avail to the petitioners. The facts of that case, shortly stated, were that rule 33 of the Indian Income-tax Rules, 1922, permitted the assessment of non-resident company carrying on business as construction engineers by one of the three modes as mentioned therein. The Income-tax Officer computed the income applying one such mode which resulted in low tax liability. Subsequently, the assessment was reopened and applying a different mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed (hereafter in sections 148 to 153 referred to as the relevant assessment year)." Mr. K. K. Jhunjhunwala, learned junior standing counsel to the Income-tax Department, submitted that the basis of the proposed reassessment proceeding is the order of the Commissioner of Income-tax (Appeals) whereby the addition of Rs. 2,65,000 in the hands of Jagdeo Pandey (amount pertaining to the petitioners herein) was set aside on the plea of the father, i.e., Jagdeo Pandey, that his minor sons, i.e., the petitioners, had already been assessed with respect to the said amount and, therefore, it could not be subjected to second assessment. But, as a matter of fact, the petitioners had not been assessed with respect to those amounts. Mr. Jhunjhunwala sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itish Kumar Pandey was deleted. It is, thus, obvious that the said amount has not been subjected to assessment in the hands, of the petitioners. It is to be kept in mind that the aforesaid deletions were made on the plea of none else than the petitioners' father that his sons, i.e., the petitioners, had been assessed for those amounts. The additions having been set aside by the appellate authority, it is obvious that they have to be treated as income in the hands of the petitioners for which there has been no assessment. In these premises, I do not find any error in the impugned orders under section 147 or the notices under section 148 of the Act. As briefly indicated above, during the pendency of these writ petitions certain orders have be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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