TaxTMI 
TaxTMI 
TaxTMI 
2010 (3) TMI 316
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....ent for the assessment year 2003-04. Inasmuch as the notice under section 148 was issued on March 31, 2009, it is beyond a period of four years from the end of the relevant assessment year. 3. The petitioner who is a solicitor and advocate, was a partner of Little and Company. He retired on September 30, 2002. Upon his retirement, the petitioner has continued to practice as a lawyer as a partner of a firm by the name ANS Law Associates. On his retirement, the petitioner was entitled to the payment of an amount of Rs. 1,36,12,500 in eight instalments in pursuance of clause 38 of the deed of partnership. In the relevant assessment year 2003-04, the petitioner received from the firm an instalment of Rs. 17,01,562. On December 18, 2003, the pe....
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....nunciation of his right to freely practice his profession for a period of three years and that the amount was consequently liable to "capital gains tax under section 28(va)". The reasons finally stated that the assessment was being reopened under section 149(1)(b) within a period of six years. 4. Two submissions have been urged on behalf of the petitioner. Firstly, it has been submitted that the assessment in the present case was beyond a period of four years and the condition precedent to the exercise of the jurisdiction to reopen an assessment has not been fulfilled. The petitioner, it is urged, had fully and truly disclosed all material facts during the course of assessment and this included the amount which was received and receivable ....
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....pleted on August 19, 2005. Though the petitioner had received an amount of Rs. 17,01,562 from Little and Co., this amount was not offered for taxation in the return of income that was filed on December 18, 2003. No inquiry was, according to the Assessing Officer, made regarding the taxability of the amount received by the petitioner from Little and Company during the assessment year 2003-04. Consequently, the assessment has been sought to be reopened by the issuance of a notice under section 148 on December 31, 2009 and the reassessment has been completed on December 31, 2009. It has been submitted that since the petitioner has availed of the remedy of an appeal before the Commissioner of Income-tax (Appeals), a petition under article....
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....ter the expiry of four years from the end of the relevant assessment year, unless any income chargeable to tax has escaped assessment, for such assessment year by reason of the failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment, for that assessment year. The Revenue has relied upon section 149(1)(b) under which no notice under section 148 can be issued for the relevant assessment year after four years, but not more than six years have elapsed from the relevant assessment year, unless the income chargeable to tax which has escaped assessment amounts or is likely to amount to one lakh of rupees or more. The power to reopen an assessment beyond a period of four years but up to six ye....
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....,12,500. The balance-sheet as on March 31, 2003 shows receivables from Little and Company of Rs. 1,19,10,937. The difference, being in the amount of Rs.17,01,562.50 was the amount which was received by the petitioner during the course of the previous year relevant to the assessment year 2003-04. During the course of assessment proceedings, the Assessing Officer had by a noting on the order sheet dated July 18, 2005 specifically called for a disclosure of details in respect of the amount received from Little and Company. By a letter dated July 30, 2005 addressed to the Assessing Officer, the petitioner made the following disclosure : "5. Amount receivable from Little and Co. represents the amount receivable on retirement from the firm. The ....