M/S HRY. PAPER CONVERTING vs. C.I.T RTK

ITR/58/1990HC Punjab & HaryanaPHHC01021609199024 October 2006Author: MR. JUSTICE RAJESH BINDAL,MR. JUSTICE ADARSH KUMAR GOEL2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court noted that none appeared for the assessee. In the absence of the assessee's representation, the Court considered it inappropriate to delve into the merits of the case. Consequently, the reference was returned unanswered. The High Court did not decide on the merits of whether the initiation of reassessment proceedings under section 147(a) was justified. The ITAT's decision upholding the initiation of reassessment proceedings was the subject of the reference, but the High Court did not provide a finding on this issue due to the assessee's absence. No operative directions were issued.

What were the facts?

The assessee is M/s. Haryana Paper Converting Industries, Rohtak, and the respondent is the Commissioner of Income Tax, Rohtak. The assessment year in question is 1978-79. The order under challenge is the Income Tax Appellate Tribunal's (ITAT) decision in ITA No.1003/1985, which upheld the initiation of reassessment proceedings. The initial assessment was for Rs.87,180, reduced to Rs.75,990 by the Appellate Assistant Commissioner. Reassessment proceedings were initiated based on information that the assessee obtained overdraft facilities against a fixed deposit receipt. The assessee filed a return in response to a notice under section 148. The Assessing Officer made additions, rejecting the assessee's claim that the FDRs belonged to third parties. The CIT(A) accepted the assessee's appeal, holding that reassessment proceedings were not justified due to no failure on the assessee's part. The ITAT, however, upheld the initiation of reassessment proceedings.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that initiation of proceedings under section 147(a) of the Income Tax Act, 1961 was justified in law? Assessee's contentions: Not recorded as none appeared for the assessee. Revenue's contentions: Not explicitly recorded, but the revenue argued for the justification of reassessment proceedings before the ITAT, which was upheld by the Tribunal.

Which sections of the Income-tax Act were involved?

Section 147,Section 148

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
ITR No.58 of 1990 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITR No.58 of 1990 Date of decision:24.10.2006 M/s. Haryana Paper Converting Industries, Rohtak ....Petitioner versus The Commissioner of Income tax, Rohtak ....Respondent CORAM: HON'BLE MR. JUSTICE ADARSH KUMAR GOEL HON'BLE MR. JUSTICE RAJESH BINDAL Present: None for the assessee. Mr. Yogesh Putney, Advocate, for the revenue.

JUDGMENT: Following question has been referred for the opinion of this Court by the Income Tax Appellate Tribunal 'E' Bench, New Delhi (for short, 'the Tribunal') arising out of its order in ITA No.1003/1985, for the assessment year 1978-79:- “Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that initiation of proceedings under section 147(a) of the present case was justified in law?”

For the accounting period ending 1978, assessment was made on total income of Rs.87,180/- which was reduced by the Appellate Assistant Commissioner to Rs.75,990/-. On receiving information that the assessee had obtained overdraft facilities from the bank against a fixed deposit receipt, re-assessment proceedings were init

The order continues below.

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