ASSTT. CIT Vs. P.N. SANYAL

JUDGEMENT

(1.) WE have heard learned counsel for parties and considered the arguments as well as pleadings.

(2.) ON 28 -5 -1995, Railway Police recovered an amount of Rs. 4,04,500 from the possession of assessee while he was travelling in a train. That information was passed on to the IT Department on 28 -6 -1995 itself. Next day on 29 -6 -1995, the Railway Police sent another intimation to the IT Department along with a copy of FIR and statement of Shri P.N. Sanyal. In the statement, the assessee had submitted that he was acting as a commission agent and the recovered money in his possession was out of that income. Moreover, his statement recorded by the Railway Police contradicted another statement that he had taken money from his friends about whom he had given only a part information. However, he also told that he had not paid any income -tax in the year 1994 -95. Thus, the Railway Police was not satisfied with the explanation given by the assessee regarding cash amount recovered from his possession.

(3.) IN this view of the matter, the Director Inspection (Inv.) IT, Kanpur, on 3 -7 -1995 issued warrant of authorization under section 132A of the Income Tax Act for requisition of books of account etc. by way of production/search and seizure. The warrant was executed on 23 -8 -1995 when the amount under assessment was seized by the Department. Resultantly, the proceedings under section 158BC were initiated on 11 -9 -1995 which finally culminated in block assessment for the period 1 -4 -1995 to 23 -8 -1995 at a total income of Rs. 29,02,711. Being aggrieved by the block assessment, the assessee filed an appeal before the Tribunal. By the impugned order dt. 23 -12 -2003, the block assessment was quashed by the Tribunal with the observation that the Department will be at liberty to take appropriate proceedings to bring to tax any income in respect of any of the assessment years covered by the block assessment order as per provisions of the law. Against the said order dt. 23 -12 -2003 passed in ITA No. 1701/All/1996 (P.N. Sanyal v. Asstt. CIT), the Department has filed this appeal through Asstt. CIT with following questions of law: