COMMISSIONER OF INCOME TAX, HYDERABAD Vs. RAMESHWARLAL GEHLOT

JUDGEMENT

(1.) THE respondent is a proprietor of M/s.Bhagawathi Enterprises, which is mainly a dealer in groundnut seeds. For the assessment year 1989 -90, the returns were submitted on 06.09.89. A sum of Rs.50,000/ - was shown as total income. A search was conducted on 18.08.1989 under Section 132 of the Income Tax Act (for short the Act). Based upon the facts and figures gathered therein, an order of assessment was passed on 31.03.1992. The taxable income of a fairly high order was shown in the order of assessment. The respondent filed an appeal before the Commissioner of Appeals. The appeal was allowed and the order of assessment was set aside mainly on the ground that adequate opportunity was not given to the respondent. The matter was remanded for fresh consideration and disposal. On remand, the Assessing Officer issued a notice under Section 143(2) of the Act. An order of assessment was passed on 25.03.1995. It was shown that the respondent has the income of Rs.24,70,520/ -. Major item shown therein was the one from other sources, being Rs.17,23,400/ -.

(2.) MOSTLY feeling aggrieved by the inclusion of the amount of Rs.17,23,400/ -, the respondent filed appeal before the Commissioner of Appeals. Through order, dated 29.02.1996, the Commissioner dismissed the appeal. Thereupon, the respondent filed I.T.A.No.917 of 1996 before the Hyderabad Bench A of the Income Tax Appellate Tribunal. The said appeal together with two similar appeals referable to subsequent assessment years were allowed by the Tribunal through its order, dated 30.09.2002. Hence, this appeal under Section 260A of the Act.

(3.) HEARD Sri S.R.Ashok, learned Senior Standing Counsel for the appellant and Sri S.Dwarakanath, learned counsel for the respondent.