MAHENDRA BHAWANJI THAKAR Vs. S P PANDE

JUDGEMENT

(1.) IN this petition is challenged a notice under Section 34 of the INdian INcome-tax Act, Act XI of 1922, issued against the petitioner by the IN- come-tax Officer, Special INvestigation Circle, Nag-pur. The second respondent is the Appellate Assistant Commissioner of INcome-tax, who passed an appellate order in consequence of which the impugned notice under Section 34 of the INdian INcome-tax Act came to be issued against the petitioner.

(2.) THE circumstances under which the notice came to be issued against the petitioner may be briefly stated as follows. THE petitioner's father, the late Bhawanji Naranji, was carrying on a mining business, principally at Nagpur. He passed away on 25th August 1956, and by a will bequieathed his movable and immovable properties to the petitioner. He originally hailed from Cutch but migrated to Nagpur for business and became a lessee from Government of manganese mines in and round about Nagpur district.

(3.) WHEN this assessment order was passed the Income-tax Officer found that certain income had been concealed and therefore ordered a notice to issue under Section 28(3) of the Income-tax Act. Meanwhile, the petitioner's father appealed to the Appellate Assistant Commissioner of Income-tax and the Appellate Assistant Commissioner upon certain findings to which we shall presently refer, reduced the total income by Rs. 58,400/-. At the same time he made observations in paragraphs 11 and 12 of his order to ,the effect that certain transactions in gold which the assessee had entered into had not been disclosed and required his explanation. The Appellate Assistant Commissioner, therefore, ordered that the assessee should be served with a notice in respect of that income which was from some undisclosed source.