P V DOSHI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) AT the instance of the assessee the Tribunal has posed in this reference the following three questions :

(2.) WHETHER the Tribunal was right in holding that the previous order of the Tribunal dated June 21, 1969, restoring the case to the file of the Income -tax Officer meant that the only point that was open was in respect of the addition of Rs. 19,421 and not the legal or jurisdictional aspect whether the reassessment proceedings were correctly initiated under section 147/148 ?

(3.) THE assessment year in question was 1960 -61 corresponding to the relevant accounting year ending March 31, 1960. The original assessment order was passed for that year on December 2, 1961. Thereafter, in the assessment year 1961 -62, the Income -tax Officer noticed that the assessee had sold gold worth Rs. 19,421 and the fund for acquisition of gold represented the income of the assessee. A show -cause notice was issued on January 11, 1962, and the assessee had given his explanation. The proceedings for reassessment under section 147 were initiated by the noticed dated September 3, 1963, in response to which the assessee filed his return on October 3, 1963. The assessee raised objections about the validity of the notice and also on merits challenging this reassessment by relying upon the affidavit of one Shri Kanji Vora in support of the plea that gold ornaments had been converted into gold bullion. The order of reassessment was passed by the Income -tax Officer on March 27, 1965, adding the aforesaid amount of Rs. 19,421 as the assessees contentions were not accepted. In appeal, before the Appellate Assistant Commissioner, however, the contention about the validity of notice was given up and on merits the Appellate Assistant Commissioner dismissed the appeal, by the order dated October 15, 1965. In the assessees appeal before the Tribunal the only controversy was as regards the acceptance of the evidence of Shri Vora and the Tribunal found that as the department was not given an opportunity to cross -examine Shri Vora, his affidavit could not have been accepted and, therefore, the Tribunal restored the case to the file of the Income -tax Officer by its order dated June 21, 1969, with a direction to cross -examine the witness, Shri Vora, on his affidavit and then to complete the reassessment proceeding in the light of the evidence so recorded, as read with the other evidence already recorded after the assessment.