COMMISSIONER OF INCOME TAX Vs. V. GOPAL

JUDGEMENT

(1.) In these tax case petitions, the Department requests this Court to direct the Tribunal to refer the following common question of law, for the asst. yrs. 1980 -81, 1981 -82 and 1982 -83, for the opinion of this Court, under s. 256(1) of the IT Act, 1961, hereinafter referred to as the "Act" ?

(2.) The assessee is an individual, carrying on tailoring business. For the asst. yr. 1980 -81, he filed his return of income, admitting a total income of Rs. 20,873 and the original assessment under s. 143(3) of the Act was completed on a total income of Rs. 26,170. For the asst. yr. 1981 -82, the returned income was Rs. 29,550 and the original assessment under s. 143(3) was made on a total income of Rs. 31,590. On 5th Oct., 1992, the Department conducted search proceedings under s. 132 of the Act in the premises of the assessee. In the course of the proceedings, incriminating documents including the order books and collection Chittai were seized and they revealed large scale suppression of tailoring receipts. Reassessment proceedings were taken for the asst. yrs. 1980 -81 and 1981 -82 under s. 147(1) of the Act by issuing notice under s. 148 to bring to tax the escaped income in respect of suppression of receipts from tailoring business and other investments. In response to the notices, the assessee filed returns of income showing a total income of Rs. 48,810 including a sum of Rs. 27,664 admitted as 'income from other sources' for the asst. yr. 1980 -81 and a total income of Rs. 60,570 including Rs. 27,676 admitted as 'income from other sources' for the asst. yr. 1981 -82. The assessments were completed for the asst. yrs. 1980 -81 and 1981 -82 on a total income of Rs. 1,84,960 and Rs. 2,34,140 respectively.

(3.) In the reassessments, additions were made not only in respect of various investments including investments in the names of his family members. For the asst. yr. 1982 -83, the assessee filed return disclosing a total income of Rs. 32,170 and the regular assessment was completed on a total income of Rs. 5,06,290. As a result of the appellate orders, the total income for the three assessment years involved herein were reduced as under :