CHAMAN LAL AND SONS Vs. AWADH KUMAR AGARWAL

JUDGEMENT

(1.) This appeal under Section 260A of the Income Tax Act, (hereinafter referred to as the 'Act') has been filed by the assessee for the assessment year 2001-02 against the order of the Tribunal dated 13.04.2010 passed by the third member of the Tribunal as well as against the order of the Tribunal dated 112.2008 and 202010 passed by the Accountant Members of the Tribunal. The appeal has been admitted on the following questions of law:-

(2.) The facts of the case are that the appellant's firm was doing the business of sale and purchase of Bajaj two Wheelers, Five Wheelers/Motorcycle. They filed a return for the assessment year 2001-02 declaring an income of Rs.52,720/-. Subsequently, the case was selected for deeper scrutiny and notice under Section 143(2) (II) of the Act were issued to the appellant. Certain queries were raised by the Assessing Officer with regard to the source of investment in the capital account of the partners, which was processed under Section 143(3) of the Act on 29.08.2003 on an income of Rs.91,210/- in the status of the firm.

(3.) A notice was issued to the assessee under Section 263 of the Act on 09.02006 claiming that the assessment order dated 29.08.2003 is erroneous and prejudicial to the interest of the revenue as certain benefits had been sought by the assessee under Section 14A of the Act with regard to certain shares which had been issued in their favour individually as member of the firm and had not been issued to the firm itself.