1991 (1) TMI 129

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the instance of the Revenue, the Incometax Appellate Tribunal has referred the following two questions for the decision of this court : "(1) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the reopening of the assessment was not valid ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal is justified in holding t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....iod subsequent to September 6, 1976, in the sum of Rs. 1 lakh was not allowable as a deduction. But it was allowed in the original assessment. The Income-tax Officer proposed to reopen the assessment to disallow the provision so made by the assessee for the period subsequent to September 6, 1976. The Income-tax Officer also disallowed the payment made to an unrecognised gratuity fund amounting to ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the decision in High Land Produce Co. Ltd.'s case [1976] 102 ITR 803 (Ker), the assessee is entitled to deduction of the gratuity amount. It is thereafter that the two questions of law formulated hereinabove have been referred to this court for decision. We heard counsel for the Revenue and also counsel for the assessee. It is true that the assessment was sought to be reopened to add back the p....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e notice. Once a reassessment proceeding was initiated under the prevailing law, the reassessment need not be confined to the particular item of income which alerted the Income-tax Officer to reopen the assessment. In this view of the matter, we answer question No. 1 referred to us in the negative, against the assessee and in favour of the Revenue. We hold the reopening of the assessment as valid.....