COMMISSIONER OF INCOME TAX Vs. LAL CHAND JAIN

JUDGEMENT

(1.) This reference relates to the assessment year 1973-74.

(2.) The brief facts are these. One Lal Chand Jain, the respondent-assessee, carried on business in iron goods under different names. He initially filed a return of his income on September 7, 1973, showing an income of Rs. 33,965. The business and residential premises of the assessee as well those of his son, Indra Chand Jain, were searched on April 22, 1974, by the income-tax officials. In the search operations, certain cash, stocks and books of account pertaining to the assessee were seized. The assessee-along with other members of his family made a combined petition dated April 2, 1974, under Section 271(4A) of the Income-tax Act, 1961 (for short "the Act"), to the Income-tax Commissioner, offering a sum of Rs. 80,000 to be taxed.

(3.) Subsequently, this petition was withdrawn and another petition was filed on April 15, 1975, in which different amounts were offered for the assessment years 1973-74 to 1975-76 to be taxed being the amounts of unexplained income. It is not necessary to give the details of the amounts for each year. The assessee also filed a revised return for the assessment year in question on May 21, 1975, declaring a total income of Rs. 57,840. However, the assessment was completed on a total income of Rs. 61,388 by an assessment order dated September 6, 1975. While framing the assessment, the Income-tax Officer also recorded a finding to the effect that the assessee had filed incorrect particulars of his income in the original return and had failed to disclose correct particulars of certain deposits with certain companies which were detected on account of search in the business and residential premises of the assessee. Therefore, it was observed :