1981 (2) TMI 56

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....NI J.-By this reference under s. 256(1) of the I.T. Act, 1961 (hereinafter referred to as the Act "), the Income-tax Appellate Tribunal, Indore Bench, has referred the following question of law to this court for its opinion: " Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the Income-tax Officer wrongly exercised his jurisdict....

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....67. Thereafter, the ITO reopened the income-tax assessment for the year 1962-63 under s. 147(a) of the Act in order to tax the amount of Rs. 36,000 which was invested in the construction of the house. The ITO held in the reassessment proceedings that the investment of Rs. 36,000 was not disclosed in the original assessment proceedings by the assessee and the ITO accordingly taxed the sum of Rs. 36....

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....ry for his assessment. In ITO v. Lakmani Mewal Das [1976] 103 ITR 437, the Supreme Court, while examining the scope of s. 147(a) of the Act, has held that two conditions have to be satisfied before an ITO acquires jurisdiction to proceed to reassess under the provisions of s. 147(a) of the Act: (i) the ITO must have reason to believe that income chargeable to tax has escaped assessment; and (ii) h....

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....turn, in the prescribed form for filing the return. No provision of law has been brought to our notice by learned counsel for the department to show that it was the duty of the assessee to disclose the source of the fund which was invested in the construction of the new portion. The assessee thus had disclosed fully and truly all material facts necessary for his assessment for the year in question....