COMMISSIONER OF INCOME TAX v. VIDARBHA HOUSING BOARD
[Citation -1987-LL-0129]

Citation 1987-LL-0129
Appellant Name COMMISSIONER OF INCOME TAX
Respondent Name VIDARBHA HOUSING BOARD
Court ITAT
Relevant Act Income-tax
Date of Order 29/01/1987
Assessment Year 1957-58, 1958-59
Judgment View Judgment
Keyword Tags reason to believe
Bot Summary: One notice opened with these words Whereas I have reason to believe that your income/the income of 1956-57 chargeable to tax for the assessment year in respect of which you are assessable, viz. The other notice opened with the same formula, except that the year first mentioned was 1957-58 and second the year 1958-59. The only ground upon which the Income-tax Appellate Tribunal has thought it fit to set aside these notices and the initiation of proceedings under section 147 is that there was a real ambiguity in the notices Mr. Thakkar, learned counsel for the assessee, has made a vehement attempt to defend the indefensible. It is patent to anyone who has the slightest acquaintance with the law of income-tax that when in the first notice the Income- tax Officer referred to the income of 1956-57 , he was referring to the income of the assessee's previous year and when he referred to the year 1957-58, he was referring to the assessment year. There is not the slightest ambiguity in the notices. What is more, the assessee filed returns pursuant to the notices. The only question that we are called upon to answer reads thus: Whether, on the facts and in the circumstances of the case, proceedings initiated by the Income-tax Officer with the notices under section 148 of the Income-tax Act were bad in law and void It relates to the conclusion of the Tribunal in relation to these ambiguities.


JUDGMENT JUDGMENT judgment of court was delivered by S. P. BHARUCHA J.-Notices were issued by Income-tax Officer to assessee on March 15, 1972, under section 148 of Income-tax Act, 1961. One notice opened with these words " Whereas I have reason to believe that your income/the income of 1956-57 chargeable to tax for assessment year in respect of which you are assessable, viz., 1957-58, has escaped assessment within meaning of section 147 of Incometax Act, 1961 ". other notice opened with same formula, except that year first mentioned was 1957-58 and second year 1958-59. Both notices informed assessee that Income-tax Officer proposed to reassess income for assessment years mentioned therein and called for returns. only ground upon which Income-tax Appellate Tribunal has thought it fit to set aside these notices and, consequently, initiation of proceedings under section 147 is that " there was real ambiguity in notices " Mr. Thakkar, learned counsel for assessee, has made vehement attempt to defend indefensible. It is patent to anyone who has slightest acquaintance with law of income-tax that when in first notice Income- tax Officer referred to " income of 1956-57 ", he was referring to income of assessee's previous year and when he referred to year 1957-58, he was referring to assessment year. Similarly, in second. There is not slightest ambiguity in notices. What is more, assessee filed returns pursuant to notices. It did not, apparently, find any ambiguity at that stage. only question that we are called upon to answer reads thus: " Whether, on facts and in circumstances of case, proceedings initiated by Income-tax Officer with notices under section 148 of Income-tax Act were bad in law and void? " It relates to conclusion of Tribunal in relation to these ambiguities ". Finding none, we answer question, without more ado, in negative and in favour of Revenue. We find it needless to go into facts in these circumstances. Tribunal, having regard to its conclusion upon " ambiguities ", found it unnecessary to go into other ground raised on behalf of Revenue in appeal and other grounds raised on behalf of assessee in its cross- objections. Tribunal shall now go into these grounds. *** COMMISSIONER OF INCOME TAX v. VIDARBHA HOUSING BOARD
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