CHAIN ROOP BHANSALI Vs. UNION OF INDIA

JUDGEMENT

(1.) The prayer in this writ petition is for a writ of certiorari to quash the proceedings of recovery of demand raised on the basis of an Assessment Order dated 28th March, 1995 for Assessment Years (AYs) 1986-87 to 1989-90 and 1992-93.

(2.) The facts in brief are that on 2nd Jan., 1995, the Petitioner (Assessee) filed an application before the Income Tax Settlement Commission ('ITSC') under Sec. 245 C (1) of the Income Tax Act, 1961 ('Act') for AYs 1985-86 to 1993-94. A copy of the settlement application has been enclosed with the petition. It reveals that the Assessee was a practicing Chartered Accountant, who was also engaged in money lending business including providing accommodation loans. A search was conducted on his premises by the Directorate of Revenue Intelligence on 22nd July, 1986, which resulted in seizure of multiple documents as well as books of accounts. Certain benami accounts were also found.

(3.) Pursuant to the aforementioned application a report was filed by the Commissioner of Income Tax ('CIT') under Sec. 245D(1) of the Act before the ITSC. It is stated that the Department Representative ('DR') at the hearing of the ITSC supported the report of the CIT and asked for allowing the settlement application to put an end to the protracted litigation.