M.A.UNNEERIKUTTY,CALICUT V. THE COMMR. OF INCOME-TAX,COCHIN

ITR/155/1998

AI Insights

The case revolves around a tax reassessment issue where the Tribunal had to decide whether the reassessment under section 147(a) of the I.T. Act for the assessment year 1971-72 was justified. The assessee, Shri M. A. Unnerikutty, contended that the income escaping assessment was beyond the jurisdiction of the Officer, claiming that the stock of copra declared in his accounts belonged to agriculturists who left it with him for sale. However, the Tribunal found that the assessee could not substantiate this claim with evidence, leading to the conclusion that there was a suppression of facts. The High Court, upon reviewing the Tribunal's decision, concurred with the findings and upheld the reassessment order.

• Counselvise Citation: [2008] 140 COUNSELVISE.COM (IT) 727090 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 27-11-2008
• Assessment Year: misc
• Laws Referred To: I.T. Act
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: P K R MENON
• Assessee Lawyers: C NAIR; DALE KURIEN
• Keywords: Copra; Income escaping assessment; Jurisdiction; Reassessment; Suppression of facts; Unaccounted purchase
• Section: 147(a)

Judgement Text

" IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE HARUN-UL-RASHID THURSDAY, THE 27TH NOVEMBER 2008 / 6TH AGRAHAYANA 1930 ITR.No. 155 of 1998() --------------------- AGAINST THE ORDER IN RA.187/1996 IN ITA 998/COCH/90 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPLICANT(S): -------------- SHRI. M. A. UNNERIKUTTY, CALICUT. BY ADV. SRI.C.KOCHUNNY NAIR SRI.DALE P.KURIEN RESPONDENT(S): --------------- THE COMMISSIONER OF INCOME TAX, COCHIN ADV. SRI.P.K.R.MENON, SENIOR ADVOCATE THIS TAX REFERENCE HAVING BEEN FINALLY HEARD ON 27/11/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C .N. RAMACHANDRAN NAIR & HARUN-UL-RASHID, JJ. -------------------------------------------- I.T.R. No. 155 OF 1998 -------------------------------------------- Dated this the 27th day of November, 2008 JUDGMENT Ramachandran Nair,J. Pursuant to the direction issued by this Court in O.P.No. 19693 of 1997, the Tribunal referred the following question of law for our decision: Whether on the facts and circumstances of the case the Tribunal is right in confirming the order of the Commissioner of Income-tax (Appeals), upholding the reassessment under section 147(a) of the I.T. Act for the assessment year 1971-72? 2. The case of the assessee is that income escaping assessment made under section 147(a) of the I.T. Act is beyond the jurisdiction of the Officer because the reason for reopening of assessment is unaccounted purchase of copra for Rs. 59,392/-. The assessee's case was that stock was declared and so much so all material facts were disclosed by him. However, the finding of the Tribunal is that the assessee accounted the stock as not belonging to him, but as belonging to agriculturists, who had left copra with him for sale. However, the 2 assessee could not prove that the copra really represents that of agriculturists and not copra purchased and held as stock by him. In this view of the matter, Tribunal held that the assessee has not disclosed full and true facts in accounts and so much so reopening under Section 147 (a) is justified. We do not find anything wrong in the finding of the Tribunal, because when assessee puts up specific case that copra held as stock belongs to others, namely, agriculturists, it is for him to produce evidence and agreements disclosing the terms and conditions on which such copra is taken from agriculturists and held as stock with him. Tribunal rightly held that quantity of copra held by the assessee was camouflaged in the accounts as goods belonging to agriculturists which the assessee could not prove with evidence. When assessee makes misrepresentation that the stock held by him belongs to others, which he fails to prove, it is a case of suppression of facts and so much so, there was no full disclosure of facts on his side. In the circumstances, we uphold the finding of the Tribunal and answer the question referred against the assessee and in favour of the revenue. A copy of this judgment under the seal of the High Court and 3 signature of Registrar-General shall be forwarded to the Income-tax Appellate Tribunal, Cochin Bench. (C.N.RAMACHANDRAN NAIR) Judge. (HARUN-UL-RASHID) Judge. kk 4 "