CIT Vs. VISHAL GUPTA

JUDGEMENT

(1.) Having heard learned counsel for the parties in these two appeals under Section 260A of the Income Tax Act, 1961 (Act, for short), which pertain to the assessment year 1995-96 and 1996-97, we formulate the following substantial question of law:-

(2.) The respondent-assessee is an individual. Additional Director of Income Tax (Investigation), Ambala on 17th October, 1996 had conducted survey under Section 133A at the business premises of Hindustan Agro Tech at Karnal and books of accounts pertaining to Gupta & Gupta Agro Tech were impounded. The respondent-assessee is the proprietor of Gupta & Gupta Agrotech. Statement of the respondent-assessee was also recorded by the Additional Director of Income Tax (Investigation), Ambala. Assessment Year 1995-96 4. The assessee had not filed return of income under Section 139 of the Act for the assessment year 1995-96. The Assessing Officer recorded reasons under Section 147 and notice under Section 148 was issued on 21st January, 1997. In response, the respondent-assessee filed a return declaring income of Rs.42,500/- on 30th June, 1997. The assessment was completed under Section 144 of the Act vide order dated 29th January, 1999. This order was set aside by the tribunal on the ground that the statutory notice under Section 143(2) was not served on the respondent-assessee within the stipulated period of 12 months from the end of the month in which return was filed.

(3.) Subsequently, the Assessing Officer recorded fresh reasons and notice under Section 147/148 of the Act was issued and served on the respondent-assessee on 23rd March, 2002. The respondent-assessee challenged the said notice before the Punjab and Haryana High Court at Chandigarh, but the writ petition was dismissed vide order dated 24th October, 2002. The Assessing Officer thereafter passed the assessment order dated 20th March, 2003 assessing the total income at Rs.30,10,100/-.