COMMISSIONER OF INCOME TAX Vs. VED PRAKASH DR

JUDGEMENT

(1.) THIS is a writ petition filed by the Assistant Commissioner of Income-tax, Investigation Circle 1(1), Hyderabad, seeking issuance of a writ a certiorari calling for the records relating to the order of the Income-tax Appellate Tribunal in M. P. No. 41/Hyd of 1992, dated September 29, 1992, and to quash the same.

(2.) A brief resume of facts is necessary to understand the controversy involved in this writ petition. The first respondent herein filed his returns of income for the assessment year ending March 31, 1985 and the assessing authority accepted the same in its order dated August 28, 1985. The assessee had filed only the income and expenditure account. He has not stated whether he had maintained books of account, not had he produced the balance-sheet or profit and loss account. There was a search of the premises of the first respondent-assessee on December 8, 1987, and gold, cash and books of account were seized. On April 7, 1988, the assessee filed a revised return disclosing and additional income of Rs. 3,25,000 aggregating to Rs. 4,05,341 and a taxable income of Rs. 3,93,310. Subsequently, he filed yet another return disclosing the taxable income to be Rs. 3,11,207 on January 31, 1989. By notice dated October 3, 1989, the Assessing Officer required him to produce all books of account on October 18, 1989. In his note dated December 22, 1989, the assessee has stated that the return dated January 31, 1989, was full and complete, since it was supported by books, balance-sheet, profit and loss account, etc., whereas the previous return was not so supported. In the ledger page relating to the hand loan account of the previous year 1984-85 corresponding to the assessment year 1985-86, which seized in the seizure conducted on December 8, 1987, there was an entry of an opening balance of Rs. 3,07,000 as on April 1, 1984. The assessment was completed treating the above entry as indicating "cash credit" which was not properly explained by entries in the books or otherwise. The amount of Rs. 3,07,000 was assessed by orders dated March 23, 1990, as unexplained income of the first respondent-assessee.

(3.) THE petitioner had filed this writ petition to call up and quash the order dated September 29, 1992, for the reason that the Tribunal exceeded its jurisdiction under section 254(2) of the Income-tax Act in recalling the order dated March 18, 1992, and posting the appeal for fresh hearing.