COMMISSIONER OF INCOME TAX Vs. LANCO INDUSTRIES LIMITED

JUDGEMENT

(1.) THIS appeal under Section 260A of the Income-tax Act, 1961, arises out of a block assessment made for the years 1986-87 to 1995-96 and also for the period April 1, 1995, to September 27, 1995. As a result of the search and seizure operations conducted by the Department on September 27, 1995, the tax of Rs. 9.27 lakhs was demanded treating the undisclosed income as Rs. 1,14,88,410. On appeal to the Income-tax Appellate Tribunal, the Tribunal partly allowed the appeal. An addition of Rs. 16,82,100 made towards the alleged unaccounted commission to V. R. Koneru, a non-resident Indian, and the addition of Rs. 95,93,200 made towards the alleged unexplained share capital investments in the names of friends and relatives of the directors and the additions made to two other minor items were deleted. The Assessing Officer was directed to reframe the assessment in the light of the appellate order.

(2.) LEARNED senior standing counsel for the Income-tax Department has urged that the findings of the Tribunal are vitiated by perversity in approach and on account of placing the burden of proof on the Revenue to prove a negative factor regarding the non-payment of commission to Mr. V. R. Koneru.