VENKATESAM CHETTY B V Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) B.V. Venkatesam Chetty submitted a return for the assessment year 1970-71 under the I.T. Act, 1961. His assessment was finalised on January 13, 1971. The order was reopened later, for, in the return, Rs. 3,600, being dividend received by him from M/s. Aruna Roller Flour Mills Private Limited, Mandapaka, was not shown by him. Therefore, the ITO, under s. 148 of the Act, reopened the assessment and included the amount and taxed it. Venkatesam Chetty protested against the order. On appeal, the Commissioner of Income-tax, on April 29, 1976, confirmed the order and directed the ITO to suitably modify the assessment for 1971-72. Aggrieved thereby, Venkatesam Chetty has approached this court to quash all proceedings by which the assessment completed on January 13, 1971, was reopened.

(2.) IT is argued, Venkatesam Chetty maintains account books under cash system, that he received on May 11, 1970, the dividend cheque and, therefore, he could not have shown Rs. 3,600 in the return for the assessment year 1970-71; consequently, he could not be assessed. This writ petition is resisted by the Revenue on the ground that Aruna Flour Mills declared the dividend on March 28, 1970, that therefore, from the stand point of "declaration of dividend", the inclusion of the amount is proper.