COMMISSIONER OF INCOME TAX Vs. M.J. SIWANI

JUDGEMENT

(1.) These four appeals, under Section 260-A of the Income Tax Act, 1961 (for short "the Act"), arise from the common order dated 31st August 2006 rendered by the Income Tax Appellate Tribunal, Bangalore (A-Bench) (for short "the Tribunal'), disposing of four Income Tax Appeal Nos.1/B/2005, 2/B/2005, 6/B/2005, 7/B/2005. The first two appeals, before the Tribunal, were preferred by the assessees, while the remaining two by the revenue.

(2.) The assessees namely, M.J.Siwani and H.J.Siwani are the partners of M/s. H.M.Constructions, which, at the relevant time, was engaged in the business of development, and were also real estate agents. Their source of income was from interest on capital, salary from firm, rental income and income from other sources.

(3.) On 29th May, 2001, a search operation under Section 132 of the Act was carried out at the residential premises of both the assessees and their business premises viz., M/s. H.M.Constructions. In the course of search, certain books/documents pertaining to the assessees were seized. On scrutiny thereof, it was revealed that the assessees had taxable income during the assessment years 1994-95, 1996-97 and 1997-98, and that they had filed return of income for these assessment years on 17-5-1996, 18-12-1998 and 18-12-1998, respectively. Though the return were filed, before the search, they were admittedly filed beyond the dates prescribed under Section 139(4) of the Act. Similarly, it was also revealed that for the assessment years 1998- 1999, 1999-2000, 2000-2001, the return of income were filed by the assessees after the search was conducted on 29-5-2001. In other words, for these assessment years the return of income were not filed either before the search or within the time stipulated under Section 139(1) and (4) of the Act. Based on the materials seized during the search, the Assessing Officer was satisfied that the assessees had undisclosed income pertaining to the aforementioned assessment years.