COMMISSIONER OF INCOME TAX Vs. CHLORITECH INDUSTRIES

JUDGEMENT

(1.) BY way of these appeals, the appellant of Tax Appeal No. 1894/2005 has challenged the judgment and order dated 20.1.2005 passed by the Incometax Appellate Tribunal, Ahmedabad Bench 'B' in ITA No. 3274/Ahd/2004 for AY 1998 -99 and the Appellant of Tax Appeal No. 1896/2005 has challenged the judgment and order dated 21.3.2005 passed by the Income -tax Appellate Tribunal, Ahmedabad Bench 'B' in ITA No. 3323/Ahd/2004 for AY 2001 -02.

(2.) W hile admitting both these appeals, this Court has framed the following substantial question of law in both the appeals:

(3.) THE assessee had filed return of income on 31.10.1998 with returned income of Rs. 2,68,76,680/ -. The same was processed under sec. 143(1). The case was selected for scrutiny and an order us. 143(3) was passed on 29.12.2000 assessing total income at Rs. 2,69,94,060/ -. However, after giving effect to CIT(A)'s order dated 22.11.2002, total income was reduced to Rs. 2,69,07,867/ -. The case was reopened by issuing a notice under sec. 148 on 26.3.2003. In compliance to the notice, assessee filed return of income on 7.11.2003 declaring total income of Rs. 2,68,91,680/ -. Thereafter, notice u/s. 143(2) was issued on 3.11.2003 and the assessee was asked to produce certain details through a notice u/s. 142(1) dated 3.11.2003. That after considering the documents, ultimately the assessment order came to be passed.Against the said order, the assessee has preferred an appeal before CIT(A),which was partly allowed. Against the said order of CIT(A), the Revenue has preferred an appeal before the Income Tax Appellate Tribunal, which was dismissed, against which, the present Tax Appeal No. 1894/2005 is preferred by the Revenue. The facts of Tax Appeal No. 1896/2005: