TMI Blog1993 (2) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... in Kolhapur. During the course of assessment proceedings in the assessment year 1966-67, the Income-tax Officer ("the I. T. O."), worked out the unexplained investment in the said property at Rs. 1,37,964 even though he was aware that the construction of the property had started in the year 1961 and was completed in the year 1966. Against the said addition, the assessee preferred an appeal before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ings for the assessment year 1965-66, the assessee had, vide his letter dated August 28, 1966, intimated to the Income-tax Officer regarding the cost of construction of the building in question along with the layout plan. The Income-tax Officer reopened the assessment for the assessment years 1964-65 and 1965-66 with a view to make certain additions on account of unexplained investment in the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had taken action under section 147(b) of the Act inasmuch as the Tribunal has not given any finding or direction in this regard while passing its order for the assessment year 1966-67. In its order under reference, the Tribunal held that the assessment could not have been reopened under section 147(a) of the Act. Further, it held that it was not possible to convert the reopening proceedings from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation has not been disclosed by him for the respective years ? 2. Whether the Tribunal is right in holding that the proceedings initiated by the Income-tax Officer under section 147(a) cannot be sustained under section 147(b), when such action could validly be taken ? 3. Whether the Tribunal was justified in holding that the provisions of section 150 read with Explanation 2 to section 153(3) w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tribunal has applied the ratio laid down by this court in the case of New Kaiser-I-Hind Spg. and Wvg. Co. Ltd. v. CIT [1977] 107 ITR 760 which is directly on the point at issue. In the instant case, the notice which was specifically issued under section 147(a) of the Act cannot be converted into a notice under section 147(b) of the Act as per the said decision of this court. Under the circumstan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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