VIJENDRA MANJUNATH SHENAI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) RULE returnable forthwith. The respondents waive service. By consent, the petition is taken up for final hearing. Heard learned counsel on both sides.

(2.) BY this petition, the petitioner challenges the order dt. 30th March, 2001, passed by the CIT under S. 264 of the IT Act, 1961 (for short, "the IT Act"), wherein two review petitions filed by the petitioner have been dismissed.

(3.) DURING the course of search on 6th Jan., 1995, the petitioner (assessee) admitted and surrendered to have received on money from 17 parties (for sale of shops/flats in a project called Barkha Project) amounting to Rs. 3.56 crores in the previous year 1994 95 relevant to the asst. yr. 1995 96. In the statement recorded under S. 132(4) of the IT Act, the petitioner admitted to have spent the above on money received in paying extra consideration for the acquisition of various house properties and plots of land in the assessee's own name and in the names of his wife and children. During the course of assessment proceedings for the asst. yr. 1995 96, the assessee, by his letter dt. 26th March, 1998, agreed that the entire amount of Rs. 3.56 crores can be taxed solely in his hands as individual. Accordingly, the assessment order for the asst. yr. 1995 96 was passed on 30th March, 1998, by including a sum of Rs. 3.56 crores under the head "Income from other sources." Thereafter by his order dt. 29th Sept., 1998, the AO levied penalty under S. 271(1) (c) of the IT Act for concealing particulars of income in regard to "on money" for the asst. yr. 1995 96.