TMI Blog1997 (12) TMI 98X X X X Extracts X X X X X X X X Extracts X X X X ..... ated March 13, 1997, issued under section 148 of the Income-tax Act, stating that income for the assessment year 1988-89 has "escaped assessment" within the meaning of section 147 of the Income-tax Act. The validity of these notices is questioned in these petitions. The issues raised for quashing the notices are the same. So, we consider it advantageous to dispose of these petitions by a common judgment. The facts alleged by the petitioners in these petitions are identical. They are as follows : The petitioners filed a return for the assessment year 1988-89, enclosing therewith income and expenditure account, wherein it showed an amount of Rs. 47,82,922.50 by way of receipt from the Daman Ganga Dam arbitration. How this amount was arriv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing Officer filed a reply affidavit dated July 30, 1997. The contentions taken therein are to the following effect : Bharat Vijay Construction Company was dissolved on October 24, 1984, when Bharat Vijay Construction Private Limited was incorporated specifically with the object of purchasing the business of the firm. Before the firm was dissolved, they have undertaken work of the Daman Ganga Project and completed the same on March 22, 1983. On November 5, 1984, the business of the firm was transferred to the private limited company except the right to receive pending claims in connection with the Daman Ganga Project. The arbitrator, who went into the claim, passed an award for Rs. 1,91,31,690 on November 6, 1986 in favour of the firm. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he same : "In pursuance of arbitration award in connection with the pending claim of Bharat Vijay Construction Co., the assessee as an erstwhile partner of a firm has received amount of award of Rs. 47,82,922 (1/4th share of total award of Rs. 1,91,31,690) during the financial year relevant to the assessment year 1988-89. This amount of award should be assessed in the hands of the assessee as the same was actually received by him as an erstwhile partner of the firm. But, the amount of award received has not been included in the total taxable income by the assessee. In view of the above, I have reason to believe that for the year ending October 22, 1987 (Assessment year 1988-89), the income of the assessee chargeable to tax has escaped a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asis of the facts mentioned therein. It is not open to the authorities to justify the action on the basis of further reasons to be supplied in the form of affidavits. In the instant case, Bharat Vijay Construction Company, the partnership firm, was assessed for the assessment year 1988-89. Rs. 1,43,25,205 was found divisible in the said assessment order passed under section 143(3) of the Income-tax Act. Consequently, each sharer was found entitled to Rs. 35,81,301. Aggrieved by that assessment order, the firm preferred appeal before the Appellate Commissioner. When the firm failed before that authority, they took up the matter before the Tribunal and the case is pending. We would like to add that when confronted with the argument of Mr. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay Construction Company for the assessment year 1988-89. Since the share income not assessed previously and submission made by the assessee is part of the return, was accepted under section 143(1)(a). The share income communicated by now requires to be taxed in the hands of the assessee. Since the return was accepted under section 143(1)(a) of the Act, the assessment requires to be rectified under the provisions of section 155 of the Act..." The documents and assessment orders referred to earlier make it clear that the assessee placed the entire facts before the assessing authority. That authority took note of all the income accrued during the year 1988-89 and passed the orders of assessments. Thereafter, the impugned notices have been is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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