AJIT KUMAR CHORDIA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The petitioner is before this Court challenging the order dated 31.03.2003 passed by the 1st respondent under Section 264 of the Income Tax Act, 1961 [hereinafter referred to as the Act] for the Assessment Years 1980-1981 to 1986-1987. The dispute which arises for consideration in these cases, lies in a very narrow campus. The petitioner and his grandmother Bhawari Kaur Chordia were co-owners of an immovable property at Door No.6 and 7, Thambu Chetty Street, Chennai. The property was sold, pursuant to an agreement dated 02.01.1980 and possession was handed over and the sale consideration for the property was to be received in instalments. For the unpaid balance of the sale proceeds, the co-owners were entitled to receive interest and for such interest for the period 1980-81 and 1981-82, Rs.3.75lakhs each i.e., for the petitioner and his grandmother.

(2.) The co-owners namely, the petitioner and his grandmother had shown Rs.3.75lakhs as income from property and also claimed permissible deduction in respect of that claim. In the meantime, the assessment in respect of the petitioner's grandmother was completed and ultimately, it was challenged by the grandmother by filing an appeal before the Income Tax Appellate Tribunal by which judgment dated 19.12.1986, accepted the case of the petitioner's grandmother as to how the income has to be assessed.

(3.) Roughly about the same time, the petitioner is stated to have voluntarily gone before the Assessing Officer and requested to issue notice under Section 148 of the Act and assess the income, as in the case of his grandmother. This lead to the order of assessment dated 31.03.1981 under section 143 of the Act by revising the assessment, in confirmation with the order passed by the Income Tax Appellate Tribunal dated 19.12.1986. Since at that point of time, the assessment has to be in line with the petitioner's grandmother as both of them were co-owners, the petitioner appears to have been satisfied with the same and took no further steps to challenge the assessment.