GANGA PRASAD BUDHIA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) TAXATION Cases Nos. 87, 88 and 89 of 1971 relate to the assessment years 1959-60, 1960-61 and 1961-62, respectively, the previous years being calendar years 1958, 1959 and 1960. In these years, the assessee, M/s. Ganpati Properties (P.) Ltd. through its liquidator, Ganga Prasad Budhia, felt aggrieved by the order of assessment under Section 147 of the LT. Act, 1961 (hereinafter referred to as "the Act"). TAXATION Case No. 43 of 1970 relates to the assessment year 1962-63, corresponding to the previous calendar year 1961. In that case, a regular assessment has been made culminating into an appeal before the Tribunal which has since been decided. In all the four cases, the points involved are common, and hence this common judgment.

(2.) WE shall, however, deal with Taxation Cases Nos. 87, 88 and 89 of 1971 first, since they relate to a point of time earlier than the assessment year with which the Taxation Case No. 43 of 1970 is concerned. It may be worthwhile to mention here that in Taxation Cases Nos. 87 to 89 of 1971, a statement of case under Section 256(1) of the Act has been submitted by the Income-tax Appellate Tribunal, Patna Bench, by a common order. In Taxation Case No. 43 of 1970, however, a statement of case has been submitted under Section 256(2) of the Act by the Income-tax Appellate Tribunal, "A" Bench, Calcutta, pursuant to a direction of this court dated March 29, 1972. In Taxation Cases Nos. 87 to 89 of 1971, two questions have been referred to be answered :

(3.) THE answer to the first question would follow the answer to the second as a necessary corollary because whether the ITO validly assumed powers conferred under Section 147 to reopen the assessment would depend upon the answer to the question whether the bona fide letting value of the properties was rightly estimated at Rs. 22,728 in the hands of the assessee/Iessor, being the rent realisable by the lessee from the tenants.