TMI Blog1987 (7) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... section 147(a) of the Act ? " It is necessary to notice the facts relevant for the purpose. For the income-tax assessment year 1974-75, the assessee had filed his return of income declaring an income of Rs. 17,635 which was accepted under section 143(1) of the Income-tax Act (for short the " Act "). For the subsequent year 1975-76, when the Income-tax Officer was scrutinising the balance-sheet filed by the assessee, it was noticed that there was a balance of Rs. 26,805 outstanding due from Birla Bazar at the end of the accounting year relevant for the assessment year 1975-76. The Income-tax Officer investigated into the matter and found that the aforesaid sum of Rs. 20,000 represented two items of loan given by the assessee to the Bir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the reassessment proceedings. The Appellate Assistant Commissioner held that the reassessment proceedings were validly initiated and dismissed the appeal. Thereafter, the assessee filed a second appeal to the Tribunal but without success. The assessee made an application under section 256(1) of the Act and obtained the present reference for the consideration of this court. Sri Habeeb Ansari, learned counsel appearing for the assessee, questions the validity of the reassessment proceedings on a short ground. He invites our attention to section 69A of the Act which provides that any unexplained money, etc., shall be deemed to be the income of the assessee as relating to the financial year in which the assessee is found to be the owner o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cised. We are unable to accept either of the contentions urged by learned counsel. It may be borne in mind that during the course of the assessment enquiry for the year 1975-76, all that the Income-tax Officer came to know was that the assessee had lent Rs. 20,000 to Birla Bazar and that there were grounds to think that the said loan transaction was not accounted for. The Income-tax Officer derived only prima facie satisfaction to come to the conclusion that there was an omission or failure on the part of the assessee to disclose fully and truly all the material facts relating to the assessment year 1974-75. These ingredients at once give jurisdiction to the Income-tax Officer to reopen the assessment. It is only after reopening the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a notice under section 143(2) and corrected the assessment made under section 143(1) by making an appropriate assessment enquiry under section 143(3). That, however, is a matter for the Income-tax Officer to choose. The power that can be exercised under section 143(2) to correct the assessment made under section 143(1) does not exclude Income-tax Officer's power to reopen the assessment under section 147. If the ingredients of section 147 are satisfied, it is open to the Income-tax Officer to exercise that power notwithstanding the fact that there are other remedies open to him under the Act. It cannot, therefore, be accepted that the reassessment under section 148 is vitiated because the Income-tax Officer failed to invoke his power to co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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