LAWS(BOM)-2009-9-250

SHARDADEVI P. JHUNJHUNWALA Vs. COMMISSIONER OF INCOME TAX

Decided On September 14, 2009
Shardadevi P. Jhunjhunwala Appellant
V/S
COMMISSIONER OF INCOME TAX Respondents

JUDGEMENT

(1.) The petitioner by the present petition seeks to impugn the order dated June 21, 1993, under Section 273A(4) of the Income Tax Act, 1961, and order dated October 31, 1994, under Section 273A(1)(i) of the Income Tax Act.

(2.) Search operations were carried out in the premises of the petitioners and of their associates on August 22, 1986. In the search carried out, shares/debentures/units valued at Rs. 82,00,000, cash of Rs. 7,25,000, ornaments and jewelleries valued at Rs. 11,34,280 and silver utensils valued at Rs. 2,70,000 were seized. Various incriminating documents including one diary called "Boston diary" was also seized. Copies of the documents and seized material were supplied to the petitioners. Between September 13, 1986, and December 18, 1986, various steps were taken. On December 18, 1986 order was passed under Section 132(5). On January 14, 1987, an application was moved under Section 132(11), but it appears no action was taken due to further developments. An application under Section 273A was made on January 27, 1987. On January 27, 1987 the petitioners in this petition disclosed an additional income of Rs. 2.29 crores. On March 3, 1987, the group filed revised returns. On March 31, 1987, according to the petitioners, the group paid additional tax of Rs. 1,06,00,000 on additional income disclosed in the revised returns for the assessment years 1970-71 to 1987-88. The assessments pursuant to the revised returns were finalized by the Department by accepting the disclosed income.

(3.) The petitioners have approached this Court contending that petitioners Nos. 1 to 9 are nationals and citizens of India. Petitioner No. 10 is the partnership firm. Petitioners Nos. 1 to 4 are assessees on their own. Petitioners Nos. 5 to 9 represent their respective HUFs. The petitioners are required to be assessed to tax under the provisions of the Income Tax Act (which hereinafter shall be referred to as the Act) as also under the provisions of the Wealth-tax Act, 1957 (which hereinafter shall be referred to as "the Wealth-tax Act" wherever applicable).