1981 (11) TMI 88 - AT - Income Tax

Assessment Year 1971-72: ITAT Delhi-C partially allows appeal, sets aside AAC's order.

The ITAT DELHI-C allowed ITA No. 3137/(DEL)/81 and partly allowed ITA NO. 3136 (DEL)/81 for statistical purposes. The AAC's order for the assessment year ... Jurisdiction to initiate proceedings under section 148 while assessment under section 143 is pending - assessment of notional income from house property (SOP) - reliance on past accepted assessment practiceJurisdiction to initiate proceedings under section 148 while assessment under section 143 is pending - Order of the AAC set aside and matter restored for fresh decision on the appellant's ground that the AAC had no jurisdiction to initiate proceedings under section 148 while proceedings under section 143 were pending. - HELD THAT: - The AAC did not apply his mind to the specific ground raised by the assessee that proceedings under section 148 were void ab initio because proceedings under section 143 were pending before the ITO. For that reason the appellate order could not stand. The Tribunal therefore set aside the AAC's order and restored the case to the AAC with a direction to consider and decide that ground afresh and then proceed to decide the appeal. [Paras 2, 3]Order of the AAC set aside; case restored to the AAC with direction to dispose of the jurisdictional ground and thereafter decide the appeal afresh.Assessment of notional income from house property (SOP) - reliance on past accepted assessment practice - Assessee's declared SOP of Rs. 1,800 accepted in place of the ITO's enhancement to Rs. 6,000 for the year in question. - HELD THAT: - The ITO enhanced the SOP though the assessee's SOP of Rs. 1,800 had been accepted in earlier years and the rateable value relied upon was not disputed. The Tribunal held that revenue authorities should not lightly depart from an earlier accepted position and create avoidable controversy. Having regard to the undisputed rateable value and the reasonableness of the previously accepted SOP, the Tribunal accepted the assessee's SOP. [Paras 4, 5]Appeal allowed and the SOP as shown by the assessee at Rs. 1,800 accepted.Final Conclusion: One appeal allowed on merits by accepting the assessee's SOP; the other appeal set aside and remanded to the AAC for fresh decision on the jurisdictional ground regarding initiation of proceedings under section 148. The appeals by the assessee were consolidated and disposed of by a common order by ITAT DELHI-C. The appeal for the assessment year 1971-72 was taken first. The AAC's order was set aside for not considering the jurisdiction issue raised by the assessee. The second appeal involved the assessment of income from SOP, which was accepted at Rs. 1800 based on past practice. ITA No. 3137/(DEL)/81 was allowed, and ITA NO. 3136 (DEL)/81 was partly allowed for statistical purposes.