LOKENDRASINGH Vs. INCOME TAX OFFICER
LAWS(MPH)-1980-8-21
HIGH COURT OF MADHYA PRADESH
Decided on August 12,1980

LOKENDRASINGH Appellant
VERSUS
INCOME-TAX OFFICER Respondents





Cited Judgements :-

DINESH KUMAR GORDHANDAS VS. COMMISSIONER OF INCOME TAX [LAWS(MPH)-1981-10-6] [REFERRED TO]
LOKENDRA SINGH RATHORE VS. WEALTH TAX OFFICER [LAWS(MPH)-1985-1-29] [REFERRED TO]
NAGA HILLS TEA COMPANY LTD VS. INCOME TAX OFFICER [LAWS(CAL)-1989-6-18] [REFERRED TO]
COMMISSIONER OF WEALTH TAX VS. ASHA DIGVIJAYA SINGH [LAWS(MPH)-1996-8-62] [REFERRED TO]


JUDGEMENT

Shukla, J. - (1.)THIS order shall govern disposal of Miscellaneous Petition No. 13/1979 also as the genesis of both these petitions is the same.
(2.)PETITIONER is an income-tax and wealth-tax assesses. PETITIONER owned some agricultural lands in the District of Ratlam. The Govt. of Madhya Pradesh acquired 107 bighas of his agricultural lands, vide notification dated February 26, 1965, published on April 26, 1965. Possession of the lands was taken by the Government on April 2, 1967, and the Collector, Ratlam, determined the compensation for the lands at Rs. 1,28,400 plus solatium at 15%. The petitioner sought a reference against the award before the District Judge, Ratlam, and the amount of compensation was enhanced by the District Judge to Rs. 17,04,038. The District Judge also directed payment of interest at 6% amounting to Rs. 80,958.
The State of Madhya Pradesh challenged this order before the High Court and the High Court, vide judgment dated April 26, 1977, reduced the amount of compensation to Rs. 12,78,328 and awarded interest at 6% per annum from February 2, 1967, to May 13, 977. During the pendency of the litigation, the petitioner did not receive any interest from the State Government.

For the assessment years 1969-70, 1970-71, 1971-72 and 1972-73, this petitioner had filed his income-tax and wealth-tax returns on the due dates. The I.T. and W.T. assessments were completed for all these years by the ITO/WTO, Ratlam.

(3.)THE respondents-ITO/WTO issued notices under Section 148 of the I.T. Act and Section 17 of the W.T. Act for reopening the assessments in respect of the assessment years in question on the ground that income/net wealth of the assessee for the relevant assessment years had escaped assessment. THE petitioner has challenged the validity of these notices and the jurisdiction of the ITO/WTO to initiate proceedings for reassessment under Section 148 of the I.T. Act and Section 17 of the W.T. Act.
The petitioner has submitted that no income had escaped assessment as a result of any omission or failure on the part of the petitioner to disclose fully or truly all material facts necessary for the assessments of the income and wealth for the above-mentioned assessment years. Petitioner averred that in his returns for income-tax and wealth-tax he had specifically declared that the income from interest shall be returned on receipt and the matter was sub-judice. Similarly, in the wealth-tax returns, he had mentioned in the relevant columns that the matter of compensation was sub-judice and, therefore, it was not included in the returns. According to the petitioner, with all these material facts before the ITO/WTO and after discussion with the petitioner's I.T. consultant, the said officer framed the assessments for the relevant assessment years. The action taken under Section 147 of the I.T. Act and under Section 17 of the W.T. Act was thus without jurisdiction inasmuch as it amounted only to a change of opinion on the part of the officer concerned as regards the taxability of the income and wealth of the assessee and there was no default on the part of the petitioner which could warrant an action under the above provisions of the I.T. and W.T. Acts. It was further submitted that the petitioner maintained his accounts on cash basis and, therefore, the interest on the amount of compensation which had not been paid was otherwise also not indudible in his income.



Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.