NIRANJAN & CO. P. LTD. versus COMMISSIONER OF INCOME TAX, WEST BENGAL-I & OTHERS

NIRANJAN & CO. P. LTD. versus COMMISSIONER OF INCOME TAX, WEST BENGAL-I & OTHERS

There was information in the form of a revised return that came into possession of the Income-tax Officer only after the completion of the first assessment. This provided a reasonable ground to believe that income had escaped assessment, giving jurisdiction to reopen the assessment under section 147. Mere fact that the eventual taxable income may be unchanged or only marginally different is irrelevant to the authority to issue a notice under section 147.

Parties
Appellant/assessee: Niranjan & Co. P. Ltd.; Respondents: Commissioner of Income Tax, West Bengal-I & Others
Jurisdiction
India
Judgment Date
19 March 1986
Procedural Posture
Civil Appeal / Final Appeal to Supreme Court From Division Bench Judgment of Calcutta High Court
Outcome
Appeal dismissed
Legal Topics
Reopening of Assessment, Section 147 of Income Tax Act, Jurisdiction of Income Tax Officer
Taxation Law Reopening of Assessment Section 147 of Income Tax Act Jurisdiction of Income Tax Officer

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Parties

Niranjan & Co. P. Ltd.

Appellant/assessee

Commissioner of Income Tax, West Bengal-I & Others

Respondents

Procedural Posture

Civil Appeal / Final Appeal to Supreme Court From Division Bench Judgment of Calcutta High Court

Legal Issues

  1. 1 Whether the Income-tax Officer had jurisdiction to reopen the assessment under section 147 of the Income Tax Act, 1961, when a revised return was filed voluntarily by the assessee after the first assessment.

Ratio Decidendi

There was information in the form of a revised return that came into possession of the Income-tax Officer only after the completion of the first assessment. This provided a reasonable ground to believe that income had escaped assessment, giving jurisdiction to reopen the assessment under section 147. Mere fact that the eventual taxable income may be unchanged or only marginally different is irrelevant to the authority to issue a notice under section 147.

Court Disposition

Appeal dismissed

Orders

  • The appeal of the assessee/appellant is dismissed with costs.