1980 (7) TMI 73

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ction 263 ? " The facts leading to this reference are as follows: The assessee is public limited company. For the assessment year 1965-66, the original order of assessment was passed by the ITO on October 7, 1969. The total income which was considered for assessment was Rs. 1,58,18,442. This assessment was reopened under s. 147 and the order in reassessment proceedings was made on March 25, 1971, by the ITO. In the reassessment proceedings, besides the income originally assessed, an amount of Rs. 68,882 was added on account of education cess for the reasons discussed in the reassessment order made under s. 143(3) read with s. 147(b) of the I.T. Act, 1961. Subsequently, that is, on September 30, 1971, the Additional Commissioner issued a no....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ause of the specific provisions of s. 263(2)(a). In arriving at this conclusion the Tribunal found that the question of allowance of the provision for interest payable to Bakubhai & Ambalal Ltd. was the subject-matter of consideration in the original assessment order passed in this case on October 7, 1969, as also in the reassessment order under s. 147 passed on March 25, 1971, and the order of the Addl. Commissioner under s. 263 passed on October 4, 1971. The Tribunal held that the proceedings under s. 263 taken up by the Addl. Commissioner were in respect of identical items of interest payable to Bakubhai & Ambalal Ltd., which formed the subject-matter of reassessment proceedings under s. 147 even though the amount may not have been disal....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... that he intended to add the interest payment to Bakubhai & Ambalal Ltd. while passing the order after reopening the assessment. In the order dated March 25, 1971, which was passed by the ITO in reassessment proceedings, he did not in terms refer to the interest payment to Bakubhai & Ambalal Ltd. but he mentioned: " Income as per original order including interest, securities and dividends Rs. 1,58,18,442." Thus, it is obvious that at the time of reassessment proceedings, the question of interest payment to Bakubhai & Ambalal Ltd. was processed by the ITO. Though there is no specific mention or discussion about this item in the ITO's order passed in reassessment proceedings, he must be deemed to have impliedly processed this particular item ....