TIPPALA APPARAO Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE assessee is a Hindu undivided family represented by its karta, Sri T. Appa Rao. It was an assessee under the Income-tax Act. T. Appa Rao, individual, is not an assessee. Messrs Visakha Gouda Association filed a return taking advantage of the voluntary disclosure scheme. In that statement, Sri T. Appa Rao was shown as one of the partners. On that basis, the assessment of the assessee was reopened by issue of notice under section 148 of the Income-tax Act. No reply or explanation was submitted by the Hindu undivided family to the said notice. Accordingly, the Income-tax Officer made the assessment ex parte, to the best of his judgment, against which two appeals were filed since the proceedings related to two assessment years, i.e., 1971-72 and 1972-73. One was preferred to the Commissioner of Income-tax (Appeals) and the other to the Deputy Commissioner of Income-tax (Appeals). THE Commissioner dismissed the appeal, but the Deputy Commissioner allowed the appeal. Ultimately, the matter was carried to the Tribunal and the Income-tax Appellate Tribunal upheld the judgment of the Commissioner of Income-tax (Appeals) and accordingly affirmed the orders of the Income-tax Officer.

(2.) THE only question before us is whether the finding of the Tribunal is either perverse or is based on no evidence. We cannot go into the adequacy of the evidence. In this case, it may be noted that no explanation was submitted nor was there any response to the notice issued to the Hindu undivided family. THE appeals by the Hindu undivided family were all filed by Mr. T. Appa Rao only, representing the Hindu undivided family. Though it was stated in the appeals that he has taken loans for the purpose of the said investment, no material whatsoever was placed before the appellate authority in support of the said plea. Having regard to the probabilities of the case and because there was no evidence to the contrary, the Tribunal came to a conclusion adverse to the assessee.