TaxTMI 
TaxTMI 
1980 (11) TMI 85
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....the A.Y. 1974-75 the assessment was completed on 10th Dec., 1964 on an income of Rs. 17,527. 3. In all these 3 years the assessee did not disclose income from property. In the Returns in para No. 3, it was clearly stated that the assessee received income from rent from Shriya market. The same was exempt as the assessee was not owner of that property. It was also claimed that the rent received was towards the capital investment made in the construction. 4. Subsequently the ld. ITO on the basis of the information from Audit started proceeding under s. 147(b) of the Act 1961. 5. In pursuance of service of the notices the assessee filed the Returns under protest and inter alia contended that assessment cannot be re-opened and the same ....
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....ops in Shriya Market in Part-III of the return and had claimed that the income from the said shops was exempt from income-tax for the reason that the HUF was not the owner of these shops, and that the rent received was towards the capital investment made in the construction. In the A.Y. 1962-63 and earlier years income from rent had been taxed as income of the assessee, but in the year under appeal such income was claimed as exempt from tax and was shown in Part-III of the return. Thus the assessee had already furnished information to the ITO that it had income from rent from shops situated in Shriya Market but the said income was exempt being the return of capital invested in the construction of the said shops. The Audit had not given any ....
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....ssee failed to disclose the facts truly and correctly. The ld. ITO on the basis of the audit note came to the conclusion that the income from rent escaped assessment. Accordingly the assessments were reopened. The ld. D.R. mainly contended that the assessments were completed under s. 143(1) of the Act and as such there was no occasion for the ld. ITO to apply his mind. According to the ld. D.R. the ld. ITO has every authority to examine the record and after examining such records he can come to a reasonable conclusion. In the present case it was found that the assessee failed to disclose the income from property and as such there was escapement of income. Thus accordingly to the ld. D.R. the finding of the ld. AAC is not correct. 10. I h....
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.... under s. 147(b) of the Act. This fact was not disputed by the Revenue before the Tribunal. Under the circumstances the re-opening of the assessments under s. 147(b) is bad in law. I may also point out that the ITO who completed the assessment is supposed to consider the return and other material which were before him. In the original assessment the exemption claimed by the assessee in respect of such income was allowed. The successor ITO on the same material cannot come to a different conclusion. If he does so it would amount to change of opinion. 12. On behalf of the Revenue it was pointed out that in earlier years the assessee has been showing income from property and the same was accepted by the Department. Under the circumstances th....