RISHABCHAND BHANSALI Vs. DEPUTY COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS appeal by the assessee is against the order of the Tribunal, Bangalore Bench, dt 29th sept. , 2003, in IT (SS)A No. 54/bang/2002 relating to the block period 1990-91 to 1999-2000.

(2.) THE AO passed a block assessment order dt. 25th June, 2001, under Section 158bc of the income-tax Act, ("act" for short), in pursuance of a search conducted under Section 132 of the act on 13th July, 1999. The said assessment order was passed after obtaining the previous approval from the Jt. CIT (Range 4), Bangalore, as required under Section 158bg of the Act. The assessee challenged the assessment order before the CIT (A)-II, Bangalore, in ITA No. 436/cit (A)-II/2001-02. The appeal was allowed in part by an order dt. 7th Feb. , 2002, granting certain reliefs. The assessee filed a further appeal before the Tribunal and the Tribunal by an order dt. 29th Sept. , 2003, allowed the said appeal in part granting some more reliefs.

(3.) THE appellant is aggrieved by the non-grant of other reliefs sought by him. The appellant contends that the appeal ought to have been allowed in entirety. He contends that the following substantial questions of law arise for consideration in this appeal: " (i) Before granting the previous approval granted under Section 158bg for making an order of assessment for a block period, whether the Jt. CIT is required to give a hearing to the assessee; and whether failure to do so will violate the principles of natural justice and thereby invalidate the previous approval as also the order of assessment for the block period. (ii) Whether, on the facts, the Tribunal is correct in law in holding that the amount of Rs. 22 lakhs constitute income in the hands of the appellant and others; and if so whether the Tribunal is justified in law in holding that the amounts have to be assessed in the hands of respective persons without hearing such persons. (iii) Whether the Tribunal is justified in law in holding the appellant is liable to be assessed for income of Rs. 2,00,000 on account of deficit stock? re. question No. (i):