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TMI Blog1998 (9) TMI 73X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment within the 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 ..... sp; 3,15,000 Amount pertaining Nitish Kumar Pandey (CWJC No. 2829 of 1991-R) (i) Loan to firm 28,458 (ii) Deposits in bank account 1,00,001 & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; -------- Both Sachdeva and Company and Jagdeo Pandey preferred appeals being Income-tax Appeals Nos. 70 and 71/JSR of 1989-90 before the Commissioner of Income-tax (Appeals), Jamshedpur. The Commissioner deleted the additions made in the hands of Sachdeva and Company and allowed its appeals. As regards Jagdeo Pandey, he held that loans of Rs. 50,000 pertaining to Saurabh Kumar Pandey and Rs. 28,458 pertainin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment proceedings on being satisfied that the income chargeable to tax had escaped assessment within the meaning of section 147 of the Act and, accordingly, had issued notices under section 148, impugned in these writ petitions on March 13, 1991. Mr. Binod Poddar, learned counsel for the petitioners, contended that the assessment of the petitioners for the assessment year 1989-90 having been completed on the basis of the returns in which all material facts had been fully and truly disclosed under section 143(1) of the Act, there was no justification for the Assessing Officer to reopen the assessments. In support of the contention, he placed reliance on CIT v. Simon Carves Ltd. [1976] 105 ITR 212 (SC). Mr. Poddar pointed out that from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax Officer was actuated by some oblique motive. The question as to whether the petitioners made full and true disclosure of all material facts in the return is not relevant as in the present case reassessment is sought to be made on the basis of the provisions of clause (b) of section 147 and not clause (a). Section 147(b) as stood at the relevant time provided that, "If---.... (b) notwithstanding that there has been no omission or failure as mentioned in clause (a) on the part of the assessee, the Assessing Officer has in consequence of information in his possession reason to believe that income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m satisfied that the case falls within the ambit of section 147(b) of the Act and the impugned notices and the proposed reassessment proceedings are not illegal. As noted above, although the sum of Rs. 3,15,000 and Rs. 1,28,459 had been shown in the returns of the petitioners as loans and investments to Sachdeva and Company. and the said amounts were added in the hands of both the firm on protective basis as well as in the hands of the father on substantive basis, the Commissioner (Appeals) accepted the addition of the amounts of only Rs. 50,000 pertaining to the petitioner, Saurabh Kumar Pandey, and Rs. 28,458 pertaining to the petitioner, Nitish Kumar Pandey, and assessed him for the same. The addition of the amount of Rs. 2,65,000 shown ..... X X X X Extracts X X X X X X X X Extracts X X X X
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