TMI Blog1989 (6) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... ondents (assessees) are the legal heirs of one A. P. Menon who died in 1957. A. P. Menon died, leaving behind two brothers (Kannankutty Menon and Echukutty Menon) and two sisters (Ambika R. Menon, Devaki Thampuran). Another sister, Ammalukutty Amma had predeceased A. P. Menon. A property belonging to A. P. Menon was acquired by the Government of Kerala under the Land Acquisition Act. compensation of Rs. 3,39,473 was awarded thereon. The capital gains arising out of the said acquisition was assessed in the hands of the aforesaid five legal heirs for the assessment year 1971-72. Kannankutty Menon, one of the brothers, died, leaving behind his son, Krishnankutty Menon and Kamalam K. Menon (daughter). Devaki Thampuran was represented by Achutha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t one-fourth share each in the State. On coming to know of this, the Income-tax Officer initiated proceedings under section 147(b) of the Income-tax Act. He issued notices on March 31, 1975 to Devaki Thampuran (represented by Achuthankutty Menon), Echukutty Menon and Ambika R. Menon. The notices were served on them on April 11, 1975. The said three persons filed returns. It should be noticed that the Income-tax Officer did not issue any notice to Krishnankutty Menon and Kamalam K. Menon, the legal heirs of Kannankutty Menon, in whom one-fourth of the estate of A. P. Menon vested. In pursuance of the returns filed by Devaki Thampuran, Ambika R. Menon and Echukutty Menon, no further action was taken. Nearly three years thereafter, on noticing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hare each in the estate, and on that basis the assessments were made originally on September 8, 1972, and March 29, 1974. It was only later, when the matter was discussed with the Income-tax Officer by one of the legal heirs and his advocate on February 24, 1975, it came to light that Ammalukutty Amma, predeceased A. P. Menon, that her children were excluded from inheriting her assets and that the estate devolved on the other co-sharers entitling them to one-fourth share each in the estate. Since there was no full and true disclosure of primary facts necessary for the assessments, the Income-tax Appellate Tribunal should have held that the reassessments effected under section 147 (a) of the Income-tax Act are valid and proper. It was furthe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... initiated under section 147(b) were pending. The second notice issued under section 147(a), dated December 21, 1978, is incompetent and unauthorised. The Income-tax Officer is not authorised to initiate successive reassessment proceedings when assessment proceedings are already pending. We are fortified in this view by the decision in Commercial Art Press v. CIT [1978] 115 ITR 876 (All). On this short ground, the assessments are barred and unsustainable. Even on the larger question, we are satisfied that in this case there was no failure on the part of the assessees to disclose truly and fully all primary facts. That A. P. Menon died in 1957, after the Hindu Succession Act, leaving behind Kannankutty Menon, Echukutty Menon, Ambika R. Meno ..... X X X X Extracts X X X X X X X X Extracts X X X X
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