2005 (2) TMI 61

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....t be reopened under section 147(a) of the Income-tax Act, 1961?" The reference relates to the assessment years 1978-79, 1980-81 to 1982-83. Briefly stated the facts giving rise to the present reference are as follows: The respondent-assessee is assessed under the Income-tax Act in the status of an individual. He was a partner in the firm- M/s. Sarang Products, representing his Hindu undivided family as its karta. His wife, Smt. Prabha Anand was also a partner in that firm. In the return of income filed by the respondent he had not declared the share income of his wife. In the assessments the share income arising to the wife of the respondent from the firm-M/s. Sarang Products was not included in the total income of the respondent. ....

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....llahabad High Court in Madho Prasad v. CIT [1978] 112 ITR 492 and since such clubbing was not done by the Income-tax Officer. I am of the opinion that the action under section 147(a) was rightly initiated by him. The appeal on this point is, therefore, rejected." Feeling aggrieved the respondent preferred second appeal before the Tribunal. The Tribunal after taking into consideration the materials on record and also the provisions of section 64(1)(i) of the Act was of the view that there was no obligation on the respondent to disclose the share income arising to his wife and, as such, the respondent's not disclosing the share income of his wife would not entitle the Department to take action under section 147(a) of the Act. The orders of....