CHAMAN LAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is an appeal under section 260A of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'). For the assessment year 1980 -81, certain additions were made by the assessing officer for unexplained cash found during search in the petitioner's premises and unexplained expenditure the matter was taken in appeal before the Commissioner (Appeals). Relief was granted on several heads by the said authority. Matter was carried by the revenue before the Tribunal, Delhi. Cross -objections were also filed by the assessee -petitioner.

(2.) THE Tribunal upheld the findings recorded by the Commissioner (Appeals), so far as the relief granted for a sum of Rs. 56,000 in respect of cash found at the time of search is concerned. So far as his claim regarding loans from seven parties is concerned, the Tribunal found that positive materials were not produced before the Commissioner (Appeals) and, thereforee, it was not possible on its part to record any definite finding. thereforee, the matter was remitted to the Commissioner (Appeals) to examine the assessor's claim for the availability of funds to the extent of Rs. 82,500 claimed to be on account of loans. The Commissioner (Appeals) was directed to take a fresh decision and pass a speaking order. So far as the assessor's cross -objection is concerned, the Tribunal found that its first plea relating to non -service of notice under section 148 was untenable in view of materials on record. As regards additions for investment in house property and investment in fixed deposits are concerned, the assessor's stand was that for an earlier year it was accepted. The Tribunal held that the plea to be not tenable as there was no nexus between additions made in the earlier years and the investment made in the subsequent years.

(3.) SECTION 260A(1) of the Act reads as follows: