COMMISSIONER OF INCOME TAX Vs. PANDURANG DAYARAM TALMALE

JUDGEMENT

(1.) THIS appeal is at the instance of the Revenue challenging the judgment and order dated 11-4-2001 passed by the Income Tax Appellate Tribunal, Nagpur Bench, Nagpur ('the Tribunal' for short) in ITA No. 358/nag. /96, for the Assessment Year 1990-91 giving rise to the following substantial question of law. SUBSTANTIAL QUESTION OF LAW Whether in the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in law in directing that the cash seized be adjusted towards the advance tax liability of the assessee as on 30-3-1990 and work out fresh interest chargeable under Section 234a, 234b and 234c of the Income Tax Act, 1961? THE FACTS

(2.) BRIEF facts pertaining to the case, are as under :-The respondent-assessee is an individual. He is also, Karta of HUF. He is separately assessed to Income tax. The assessee is the head of the family. The assessee had furnished returns on 27-2-1990 declaring total income at Rs. 12,87,470/ -. The sources of the income shown were share income from M/s PDT Trading Company, other sources such as N. S. C. interest with agricultural income. The assessee did not maintain any regular Books of Accounts. However, the Balance-sheet was furnished. The assessee did not dispute that the income from the other sources was also from and out of "worli-matka' business.

(3.) THE search and seizure operations under Section 132 of the Act, were carried out on 30-11-1989. During the course of search and seizure proceedings cash worth Rs. 16,88,400/- was found with the assessee and Rs. 2,10,000/- with his son Mr. Harish. In addition, Special Bearer Bonds worth Pis. 14,10,000/- with some other papers; indicating worli-matka transactions carried out by the assessee including some investment in the construction of the house in the name of Smt. Kaushaliyabai (maternal aunt of the assessee), were also noticed.