GEETA GARG C/O RAJINDER PAL PREM PAL vs. COMMISSIONER OF INCOME TAX, PATIALA

ITA/174/2012HC Punjab & HaryanaPHHC01099243201204 December 2012Author: MR. JUSTICE AJAY KUMAR MITTAL,MR. JUSTICE GURMEET SINGH SANDHAWALIA3 pages
AI SummaryDismissed

What were the facts?

The appeals were filed by the assessees (Geeta Garg, Shama Rani, and Chander Kanta) against the order dated November 18, 2011, passed by the Income Tax Appellate Tribunal (ITAT) 'B' Bench. The assessment year in question is 2002-03. The assessees are challenging the initiation of reassessment proceedings under Section 147 of the Income Tax Act, 1961. The appeals were filed with a delay, which was condoned by the High Court. The High Court noted that the issues raised in these three appeals were identical and decided to dispose of them together, taking facts from ITA No. 174 of 2012 for brevity.

What did the High Court hold?

The High Court dismissed the appeals, holding that no substantial question of law arose for consideration. This decision was based on a previous judgment of the same court in ITA Nos. 98 to 102 of 2012, dated July 16, 2012, which dealt with a similar issue concerning family members of the assessee. The court followed its prior ruling, implying that the issue of 'borrowed satisfaction' in initiating reassessment proceedings, as framed by the assessee, was not considered a substantial question of law in the context of the cited precedent. The operative direction was the dismissal of the appeals.

What were the issues?

1. Whether, under the facts and circumstances of the case, the onus to prove 'reason to believe' is discharged when reassessment proceedings under Section 147 are initiated based on 'borrowed satisfaction' and without application of mind by the assessing officer, as defined under Section 2(7) of the Income Tax Act, 1961? Assessee's contention: The assessee argued that the 'reason to believe' for initiating reassessment proceedings was based on borrowed satisfaction and lacked independent application of mind by the assessing officer, thus failing to meet the requirements of Section 147. Revenue's contention: The judgment does not record any specific contentions made by the revenue. However, the dismissal of the appeal implies that the revenue's position, as upheld by the ITAT, was considered valid.

Which sections of the Income-tax Act were involved?

Section 147,Section 2(7),Section 260A

AI-generated summary — verify with the full judgment below

IN THE PUNJAB AND HARYANA HIGH COURT AT CHANDIGARH Date of Decision: December 04, 2012 (1) ITA No.174 of 2012 (O & M) Geeta Garg

....Appellant Versus Commissioner of Income Tax, Patiala (Punjab)

.... Respondent (2) ITA No.185 of 2012 (O & M) Shama Rani

....Appellant Versus Commissioner of Income Tax, Patiala (Punjab)

.... Respondent (3) ITA No.186 of 2012 (O & M) Chander Kanta

....Appellant Versus Commissioner of Income Tax, Patiala (Punjab)

.... Respondent CORAM: HON'BLE MR. JUSTICE AJAY KUMAR MITTAL HON'BLE MR. JUSTICE G.S. SANDHAWALIA Present: Mr. Pankaj Jain, Advocate, for the appellant. **** AJAY KUMAR MITTAL, J. CM No.19332-CII of 2012 in ITA No.174 of 2012, CM No.20451-CII of 2012 in ITA No.185 of 2012 and CM No.20453-CII of 2012 in ITA No.186 of 2012 Allowed as prayed for. CM No.19333-CII of 2012 in ITA No.174 of 2012, CM No.20452-CII of 2012 in ITA No.185 of 2012 and CM No.20454-CII of 2012 in ITA No.186 of 2012 In view of the averment

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