COMMISSIONER OF INCOME TAX Vs. V R DURGAMBA

JUDGEMENT

(1.) AT the instance of the Department, the Tribunal referred the following question for the opinion of this court under section 256(2) of the Income-tax Act, 1961 :"Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the Income-tax Officer had not validly assumed jurisdiction under section 147(a) of the Act ?"The Income-tax Officer had taken action under section 147(a) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), in order to bring to assessment a sum of Rs. 3, 423 granted to the assessee as interest under section 214 of the Act.

(2.) THE assessee has been granted this interest. For the assessment year 1973-74, the interest was allowed on November 21, 1974. This interest of Rs. 3, 423 was not returned by the assessee for the assessment year in question in the original assessment proceedings. After the original assessment proceedings were completed, but before action was initiated under section 147(a) giving rise to the appeal, the Income-tax Officer had taken action under section 147(b) and made an assessment on October 7, 1977.