TaxTMI 
TaxTMI 
1996 (9) TMI 69
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....I. T. A. No. 10/Ind. of 1983 for the assessment year 1975-76 : " (i) Whether, on the facts and in the circumstances of the case, the Income-tax Officer had jurisdiction to reopen the assessment under section 147(a) of the Income-tax Act, 1961 ? (ii) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee, being a Hindu undivided family, could not receive gifts ? " The facts lie in a narrow compass. For the assessment year 1975-76 (previous year ending Diwali, 1974), the assessee was originally assessed in the status of a Hindu undivided family under section 143(3) of the Act on a total income of Rs. 36,400 and agricultural income of Rs. 4,210. In wealth-tax proceedings, the matter w....
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....nder section 256(1) of the Act in which no question regarding the initiation of proceedings under section 147(a) was proposed. The application was rejected. The assessee then filed an application under section 256(2) of the Act which was registered in this court as Miscellaneous Civil Case No. 174 of 1985. That was disposed of on August 2, 1988, directing the Tribunal to state the case and refer the aforesaid questions for consideration. In compliance, the Tribunal has referred the aforesaid questions. We have heard Shri P. M. Choudhary, learned counsel for the applicant/ assessee, and Shri A. M. Mathur, learned senior counsel with Shri A. K. Shrivastava, for the non-applicant/Revenue. As regards question No. (i), counsel for the applican....
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....nditions precedent to the exercise of the jurisdiction under section 147(a) read with section 148. The assessee stated before making assessment, that the income was received before March 31, 1956, financial year ending on by which date section 12B of the Indian Income-tax Act, 1922, making capital gains exigible to tax had not come into force. Accepting this, the sum in question was excluded from the consideration of the assessment. The subsequent information in the possession of the Income-tax Officer disclosed that the assets were transferred on a date by which date section 12B came into force. The notice did not prima facie disclose the satisfaction of the two conditions precedent enjoined under section 147(a), but in the counter-affidav....