TMI Blog1996 (2) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee, the Tribunal is right in law and with jurisdiction in considering the validity of reassessment on merits and in deciding the issue against the Revenue ? 2. Whether, on the facts and in the circumstances of the case and in view of the non-consideration of the question of validity of reassessment on merits by the Commissioner of Income-tax (Appeals), cannot the assessee file an appeal or cross-appeal/objection under law against non-consideration of the issue of reassessment by the Commissioner of Income-tax (Appeals) before the Income-tax Appellate Tribunal ? 3. Whether, on the facts and in the circumstances of the case, the Tribunal is right in law and fact in holding that ' a point not decided by the appellate authority is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition that the assessment for the year 1980-81 was opened at the relevant time. The Assessing Officer disallowed this claim for trading loss for the year 1981-82 and initiated reassessment proceedings in respect of the assessment years 1976-77 to 1979-80 pursuant to the assessee's admission that the clerk had committed defalcation of funds by manipulating wages accounts in those years resulting in the inflation of the amount of wages claimed and allowed in respect of those assessment years. The reassessment was initiated under section 147(a) of the Act. Before the appellate authority, objection was taken with regard to the initiation of the reassessment under section 147(a) of the Act. Additionally on the merits also with regard to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of sizable amount during the previous years which fact came on the surface of knowledge in the assessment year 1981-82. This is also borne out from the record of the filing of the criminal complaint on April 17, 1980. When all these facts were brought to the notice of the Assessing Officer with reference to the claim of a trading loss in the assessment year 1981-82, the proposed action to reopen the assessment was initiated for the first time. In the light of the above factual situation and in view of the clear conclusion as a result thereof that there is no question of escape of assessment during all the previous years because the knowledge of the trading loss could be considered to be at home only after the visit of the internal a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ---------------------------------------- This was obviously done in the absence of any cross-objection or cross-appeal and was urged and taken up for consideration by the Tribunal even in the absence of the question being dealt with by the lower appellate authority, although there is no dispute that the initiation of the reassessment proceedings under section 147(a) of the Act was objected to before it also. In other words, the question is of the justifiability of the Tribunal to take up the question of reassessment proceedings and its initiation leading to the conclusion that the said initiation could only be contemplated under section 147(b) of the Act and thereby as an inevitable situation being clearly time-barred could have been co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rounds decided against him. The general principles of civil law are crystal clear in this respect if the provisions of Order 41, rule 22 of the Civil Procedure Code, are glanced at. They are to the effect that any respondent, not having appealed independently, may not only support the decree, but in addition he may also state that the finding against him in the court below in respect of any issue ought to have been in his favour. Apart therefrom he may also take any cross-objection to the decree which he could have taken by way of an appeal. In other words, under the ordinary civil law a respondent can not only support the impugned decree but also urge with reference to any issue that the finding in regard thereto ought to have been in his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the approach in regard to this is ringing in the decisions of the Supreme Court that the approach has to be justice-oriented and it is the end of the litigation that should be in sight and in regard thereto if it is found that it would not be in consonance with justice to allow the proceedings to continue, the relevant provisions of the law of procedure require meaningful appreciation in the context. The factual matrix shows that initiation of the proceedings of reassessment under section 147(a) is not comprehensive. The only alternative is to understand the initiation under section 147(b) of the Act and then there cannot be any dispute that the action is clearly and hopelessly time-barred. In this situation, the Tribunal will have to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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