1994 (3) TMI 49

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....ion 256(1) of the Act, vide its order dated January 10, 1984. The questions which were raised under section 256(1) were as under : "Whether, on the facts and in the circumstances of the case, the Tribunal is justified :- (i) in holding that the proceedings under section 147(a) of the Income-tax Act, 1961, are not sustainable in law? (ii) in holding that there was no information justifying action under section 147(b) of the Income-tax Act? (iii) in holding that the Income-tax Officer could not have made an assessment after having reopened the proceedings under section 147(a)/147(b) and to give effect to the set (sic) the assessment under section 263 and consequently in quashing the Income-tax Officer's order dated May 6, 1980?" ....

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....0 was received on partial partition on January 4, 1976, which was stated to be in the form of precious cut stones and was contributed by the Hindu undivided family, as capital in the firm, Mannalal Nirmal Kumar Surana and Co., a partnership firm in which the Hindu undivided family became a partner. The assessment was completed by the Income-tax Officer, Special Survey Circle-I, Jaipur, on August 3, 1977. Subsequently, the jurisdiction of the case was assigned under section 127 to the Income-tax Officer, Central Circle-II, Jaipur. He found that the Income-tax Officer, Special Survey Circle-I, Jaipur, completed the assessment taking that the value of Rs. 15,32,000 fully covered by the voluntary disclosure made by the bigger Hindu undivided fa....

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....In appeal, the Commissioner of Income-tax (Appeals) upheld the initiation of proceedings under section 147(b) but set aside the assessment in respect of the order passed in consequence of the order of the Commissioner of Income-tax under section 263. The matter was challenged before the Income-tax Appellate Tribunal by the assessee as well as by the Revenue. The Income-tax Appellate Tribunal came to the conclusion that there was no information in the possession of the Income-tax Officer within the meaning of section 147(b), and, therefore, the order of the Commissioner of Income-tax (Appeals) was reversed. It was held that the capital gains could be subjected to tax in the assessment year 1976-77 and not in the year 1977-78. The contention ....