2007 (4) TMI 235

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....ed the fact that he has made investments in two immovable properties and income arising out of those immovable properties. Accordingly, notices were issued under section 148 of the Income-tax Act seeking to make reassessment of the income of the assessee for the assessment years 1988-89 to 1992-93 and also for the assessment years 1992-93 to 1994-95. In response to the notices under section 148 of the Act, the assessee disclosed before the Assessing Officer that he does not own any immovable property, but his wife owns two immovable properties and acquisition of those properties, source of fund for acquisition thereof as well as incomes derived therefrom have been accounted for by her in her separate returns filed during the relevant assess....

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....2-93 and the Tribunal held that it is impermissible to club disclosed income of an assessee as accepted by the Department in the income of yet another assessee without reopening the assessment of the assessee whose income was, thus, to be clubbed with the income of the other assessee. This order of the Tribunal was brought on the record by the assessee in relation to the matter which was then pending in this court pertaining to the assessment years 1992-93 to 1994-95 together with the fact that challenge thrown to that order having been rejected by this court was also rejected by the hon'ble Supreme Court. 2. While the matter was dealt with by this court in relation to the assessment years 1992-93 to 1994-95, the things that happened by ....

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....amount as credited in the books of the assessee was doubted. It was urged that inasmuch as appropriate tax has been paid on that amount by the wife it is now not open to doubt the genuineness of the source of the said amount. That was repealed by the High Court on the principle that there is nothing in section 24 of the said Act which prevents the Income-tax Officer, if he was not satisfied that the explanation of an assessee about the genuineness or source of an amount found credited in his books, in spite of it having already been made the subject-matter of a declaration by the creditor under the scheme, from investigating the true nature and source of the amount. This judgment, therefore reiterates the basic logic of assessment of income....