COMMISSIONER OF INCOME TAX Vs. VALI BROTHERS

JUDGEMENT

(1.) The Income Tax Appellate Tribunal has referred the following question of law under Section 256 (1) of the Income Tax Act, 1961 (hereinafter referred to as"Act") for the assessment year 1989-90 for opinion to this Court.

(2.) The brief facts of the case are as follows:The assessee/opposite party hereinafter referred to as assessee') furnished a return declaring an income of Rs. 320/- pursuant to notice under Section 148 of Income Tax Act, 1961. The assessee also paid an advance tax of Rs. 1 Lac on 30.3.1989 and the said amount of advance tax paid by the assessee was claimed as refundable in the return of income filed on 25.10.1991. The Assessing Officer completed the assessment under Section 143 (3)/148 in which, he observed that since the total income is deductible under Section 80 HHC, there is no escapement of income. He therefore, dropped the proceedings vide order dated 29.11.1991. The Assessing Authority, however, did not determine the amount refundable to the assessee.

(3.) The Deputy Commissioner (Appeal) dismissed the assessees appeal and held that Section 147 is meant only to bring to charge the escaped amount of income to tax and it is not meant to serve as a foundation of any claim such as a refund by an assessee.