TMI Blog1989 (9) TMI 151X X X X Extracts X X X X X X X X Extracts X X X X ..... under s. 263 to make the impugned order. 3. The assessee, Shri Vinod Kumar Gupta, is an individual having income from house property share of profits form M\s New Idea Farm Equipment Co. Interest on deposits etc. The assessee was travelling with a couple, who were family friends, in a car driven by a driver on 29th Dec., 1979 when unfortunately, the car met with a serious accident. The friend of the assessee died on the spot His friends wife however, survived with injuries. The assessee was grievously injured. The accident took place in the jurisdiction of Motor Accident Claim Tribunal Gudaspur. He was admitted to CMC. Ludhiana from a medical certificate issued on 18th Oct., 1980 it appears that he had fractures and was still under trea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hand to this typed letter that a notice under s. 143(1) is enclosed. By letter dt. 23rd Jan., 1985 the assessee explained to the Officer that he had taken out accident policy on his life and as a result of the accident, he suffered grievous injuries and was admitted to the local hospital the amount of compensation amounting to Rs. 34,413 on this account it was claimed was a capital receipt of and not liable income-tax In support of this claim letter from insurance company had already been filed before the ITO to which his attention was invited. 5. The ITO (Shri D.R.Dhanna) after examination of all the evidence on record, completed the assessment on 25th Jan., 1985 under s. 143 (3) determining total income of the assessee at Rs. 65,858 I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ur record, which, unfortunately, does not bear any date but the learned Commissioner has written in his impugned order that it was dt. 21st August, 1986. In this letter the learned Commissioner projected to the assessee that in assessment made on 25th Jan., 1985 the ITO had not included the sum of Rs. 34,143 received as compensation from National Insurance Co., on account of temporary disablement. According to him, the order made by the ITO was thus erroneous as well as prejudicial to the interest of Revenue and he intended to pass a suitable remedial order. The assessee filed written reply dt. 21st August, 1986 and was also heard through his learned counsel Shri subhash Aggarwal, Advocate. It was submitted before the learn commissioner tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9. Before us, the learned counsel for the assessee relying upon the judgment of the Punjab and Haryana High Court in the case of (a) CIT vs. R.K. Metal Works 1977 CTR (P H) 99 : (1978) 112 ITR 445 (P H) (b) judgment of the Tribunal in the case of Smt. Guljit Walia vs. ITO (1988) 32 TTJ (Del) 538 and judgment of the Tribunal in the case of S.N. Aggarwal vs. ITO (1982) 13 TTJ (Del) 444 contended that the order made by the ITO on 25th Jan., 1985 was neither erroneous nor prejudicial to the interest of Revenue as it had been made after due enquiries and in accordance with the provisions of law. The commissioner had, therefore no jurisdictional facts for making the impugned order. It may be cancelled The Revenue on the other hand, relying upon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bear the character of income includible in the total income of the assessee for the year under appeal. 11. On such facts, the Commissioner could not have assumed lawful jurisdiction without showing how the order of the ITO was erroneous as well as prejudicial to the interest of revenue and as to what the basis of such a conclusion was as held by the Hon'ble Punjab and Hariyana High Court in the case of R.K. Metal Works, mentioned supra. The fact that the CIT had an opinion different from what the ITO had after due enquiries and after proper consideration of the relevant provisions of law, could not justify to say that the order made by the ITO was erroneous as well as prejudicial to the interest of the Revenue to give the Commissioner la ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
