1989 (11) TMI 98

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....dity of the reopening of the assessment which is made under s. 17(1)(b) of the WT Act. The assessee for these various years at the time of original assessment had filed a detailed balance-sheet in which an advance given to one of the trustees, namely, Shri Devilal Sharma, was shown under the head 'advances'. The said trust is in existence from 1955 and the advance so provided to the trustee was in the knowledge of the WTO at the time of making of the original assessment. The basis of reopening was that since the trust had advanced monies to one of the trustees, thereby provisions contained in s. 13 of the IT Act, i.e., diversion of the part of the funds of the trust to the immediate benefit of the trustee, thus, the object of the trust to c....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....at Rs. 12,000, Rs. 22,000 Rs. 27,000 and Rs. 34,000 for the asst. yrs. 1978-79, 1979-80, 1980-81 and 1981-82 respectively. The WTO no doubt had not made any specific mention or observation in regard to these advances so shown to have been given to one of the trustees in the balance-sheet for the various years. But, all the same, the information of the advance so provided to a trustee was on the records of the Revenue. In these circumstances, the involving of the proviso to s. 17(1)(b) of the WT Act that on the basis of information received by the WTO that he had sought to reopen the assessment would not be proper for the reasons that (a) the information should not have been provided by the assessee at the time of original assessment, (b) it....