9911796707
TMI Blog1982 (4) TMI 105X X X X Extracts X X X X X X X X Extracts X X X X ..... bsp; Rs. Kalash One 31.165 34,201.50 Kalash Two &nbs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bsp; --------------------- 4,05,958.95 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t gain on sale of silver utensils has escaped assessment. Hence, action under section 147(b) for the assessment year 1975-76 is necessary. sd/-- Issue notice u/s 148 27-3." The assessee objected to the reopening of the assessment under section 147(b), which was overruled by the ITO. Reliance was placed by the assessee on the decision of the Tribunal in the case of Ramadevi R. Poddar (IT Appeal No. 1031 (Bom.) of 1981 dated 29-9-1981) for the proposition that the silver utensils were actually personal effects held for personal use. The ITO did not agree. He held the utensils to be not personal effects and calculated capital gains at Rs. 3,44,828 and brought the same to tax accordingly. 4. The assessee appealed to the Commissioner (Appeals), and contended that the action of the ITO was not justified. The Commissioner (Appeals), however, held that the decision in the case of H.H. Maharaja Rana Hemant Singhji came to be known by the ITO after he completed the original assessment, and that the said decision constituted "information" so that the assessment was validly reopened under section 147(b). On merits, he also agreed with the ITO that the utensils under consideration were not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... could not be personal effects. He pointed out that the decision of the Supreme Court in the case of H.H. Maharaja Rana Hemant Singhji came after the original assessment was made on 20-11-1975, and that decision constituted "information" for reopening the assessment under section 147(b). Regarding the jurisdiction of the ITO to proceed under section 147(b) on a point already considered and found to be untenable by the Commissioner under section 263, he stated that the Commissioner did not pass any final order on merits. The Commissioner merely proposed to proceed under section 263 but dropped the proceedings for some reasons, which did not mean that the ITO lost his jurisdiction under section 147(b). 7. Shri Mulla explained that the family to which the assessee belongs was very old and rich and the silver utensils were acquired long back by the family and were actually being daily used for personal purposes, at their native place. Subsequently, partition took place in the family, and some of the persons migrated to Bombay. They did not think it fit to carry the utensils with them and so they were left at the native house. He stated that the utensils were actually used for personal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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