CIT AND ANOTHER Vs. SURENDRA CHAND BANSAL

JUDGEMENT

(1.) This Income Tax Appeal under Section 260-A of the Income Tax Act, 1961 (for short, the Act) arises out of judgment and order dated 20.6.2002 passed by the Income Tax Appellate Tribunal, Agra Bench, Agra in ITA No. 8151/Del/1992 for the assessment year 1987-88. The appeal was admitted on 19.7.2007, on the following substantial questions of law:-

(2.) The assessee is a partner in M/s Chandra Timber Traders of Chandra Timber Group. The search and seizure operations were conducted on 19.1.1989 at the business and residential premises of the firm and the partners of the group. The assessee filed a return on 20.11.1987 showing income at Rs. 1,14,526/-, which included capital gain on sale of silver amounting to Rs. 71,411/-. The assessment was completed under Section 143 (1) of the Act on 19.2.1988. Later a notice under Section 148 of the Act was served on the assessee. In reply the assessee submitted that the return originally filed may be taken as return filed in response to the notice.

(3.) The AO found that the gifts in the name of minor children Km. Rashmi Bansal and Master Annu Bansal of Rs. 21, 000/- each on 21.7.1986 were not explained. The assessee could not produce the relevant purchase bills of sale of silver worth Rs.3,07,821/- of which the cost of silver was shown at Rs. 1,55,000/-. The AO also found that the profits earned by the minors Km. Rashmi Bansal and Master Annu Bansal of Rs.17,100/- and Rs. 17,098/- from out of profits from M/s Param Puri Trading Co. Delhi and M/s Paras Nath Trading Co., Delhi were not earned by them. These profits were the income of the assessee. He also found that there were unexplained deposits in the bank account of Smt. Usha Bansal-the wife of the assessee of Rs. 40,150/-. Smt. Usha Bansal being housewife has not done any sort of business to receive profits from M/s Mahavir Prasad Atal Kumar, Delhi. The AO added the profits shown to be earned by the minor children the income from the sale of silver and the unexplained deposits in the wife of the assessee for his income.