TaxTMI 
TaxTMI 
2004 (4) TMI 579
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....lance amount of tax " for want of funds" The assessing authority assessed the income and tax liability as under: (i) Total income as per return: Rs. 1,56,680 (ii) Adjustment Under section 143(1)(a) Rs. 2,80,858 Grand Total (I + II) Rs. 4,37,538 (iii) Tax on assessed income: Rs. 77,165 (iv) Surcharge Rs. 7,716 (v) Total Rs. 84,861 Interest Payable: 234A Rs. 7,610 Under-Section 234B Rs. 27,660 Under-section 234C Rs. 3,880 Total 1,18,981 Less Pre-paid tax 8,635 Total Tax payable 1,10,346 2. On receipt of demand, the petitioner approached respondent No. 1, who is revisional authority and raised plea of non-disclosure of certain facts in the Income tax return and claimed benefits under section 54F of the Income Tax Act. It was pleaded before respondent No. 1 that the petitioner's liability of Tax as assessed by the Assessing Authority is not according to law. It was disclosed that the petitioner had sold her 1/5th share in the land at Chhani Himmat for a consideration of Rs. 2,80,858 and purchased 1/5th share in the House No. 3 B/C at Gandhi Nagar, Jammu for a....
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....acts were not disputed the revisional authority was required to exercise the revisional power and grant relief to the petitioner. 6. In responses to the petition, the respondents have filed reply. Mr. D.S. Thakur, refuting the contention of the petitioner has contended that the Income Tax is a self-contained and complete Code in itself which provides and prescribes the procedure and the method of making the assessment. The petitioner's Income Tax return has been accepted by the assessing authority and thus there was no occasion for the revisional authority to interfere in the same. It is further stated that the writ Court is not to exercise the appellate jurisdiction over the decision of the authority under the Act. It is only if the authorities under the Act fail to follow the procedure prescribed and the orders are other-wise perverse, the High Court can exercise its extra-ordinary jurisdiction. In regard to the claim of the petitioner for the benefit under section 54F, it is stated that the benefit is admissible only where such a claim is made by the assessee in the return of Income Tax but when the petitioner did not make any such claim in her return, she will not be ent....
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.... passed and there-after realized the mistake which was incurable after the lapse of time. She invoked the revisional jurisdiction of respondent No. 1 under section 264 of the Income Tax Act which reads as under: "264 (1) In the case of any order other than an order to which section 263 may, either of his own motion or on an application by the assessee for revision, call for the record of any proceeding under this Act in which any such order has been passed and may make such inquiry or cause such inquiry to be made and subject to the provisions of this Act, may pass such order thereon, not being an order prejudicial to the assessee, as he thinks fit. (2) The Commissioner shall not of his own motion revise any order under this section if the order has been made more than one year previously; (3) In the case of an application for revision under this section by the assessee, the application must be made within one year from the date on which the order in question was communicated to him or the date on which he otherwise came to know of it, whichever is earlier" 10. A bare reading of section makes it abundantly clear that the Commissioner has discretion to invoke....
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....ssment order was passed. The revisional jurisdiction was invoked within the prescribed time. The revisional authority having widest possible powers under section 264 was required to hold an inquiry or cause any inquiry to be held and consider the question of purchase of the property and proceeded to comply the provisions of section 54F. The reasoning given by the revisional authority is only technical. This question was decided in similar circumstances by Gujrat High Court in Digvijay Cement Co. Ltd v. CIT and Anr., TC 57R. 467, wherein it has been held as under: "This section empowers the CIT, either on his own motion or on an application made by the assessee to call for the record of any proceeding under the Act and pass such order thereon not being an order prejudicial to the assessee. This power has been conferred upon the CCIT in order to enable him to give relief to the assessee in cases of over-assessment. The power is conferred to him in wide terms and as pointed out by this Court in C. Parikh and Co. v. CIT TC 57R. 716 and by the Kerala High Court in Parekh Brothers v. CIT TC 57 R. 720, this power should be exercised by the CIT subject to the limitations prescribed in t....
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....urn is erroneous. The CIT was bound to apply his mind to the question whether the petitioner was taxable on that income. The ITO is entitled under Section 23(1) to make an assessment on the basis of the return if he is satisfied, without requiring the presence of the assessee or the production of evidence in support of the return, that the return is correct and complete. But it may be that the assessee may have committed a mistake in treating a certain receipt as taxable. The mere circumstance that he has shown that receipt as income in his return does not make him liable to tax thereon. An assessee is liable to tax only upon such receipt as can be included in his total income and is assessable under the IT tax. The law empowers the ITO to assess the income on an assessee and determine the tax payable thereon. In doing so, he may proceed on the basis that where an assessee discloses that a certain sum of money has been received by him, the fact of that receipt may be accepted without anything more as constituting an admission on the part of the assessee. That would be an admission as to a matter, and consideration of that question leads into the realm of law. If the ITO assesses an....