COMMISSIONER OF INCOME TAX Vs. GANGAPRASAD BACHULAL

JUDGEMENT

(1.) ON being directed under Section 256 (2) of the IT Act (for short, "the Act"), by order dt. 24th April, 1996, passed in MCC No. 489 of 1993, the Tribunal has referred the following question for the opinion of this Court:

(2.) THE respondent-assessee in response to notice under Section 139 (2) of the Act, filed return for the asst. yr. 1969-70 after a delay of 32 months declaring a loss of Rs. 10 lakhs from business. During the course of assessment proceedings, the assessee, however, did not produce its books of accounts inspite of repeated notices as a result of which the assessment was completed under Section 144 of the Act. The assessee took the matter in appeal before the AAC and thereafter before the Tribunal. At both the stages, the matter was set aside/remanded to the AO. Again in the fourth round, the AAC determined the loss from business at Rs. 4,15,960 and the income from undisclosed sources at Rs. 5. 00 lakhs. Dissatisfied with the order of the AAC, the assessee filed a second appeal before the Tribunal. The Tribunal, however, upheld the order of the AAC and dismissed the appeal by order dt. 7th Jan. , 1990.

(3.) THE assessee thereafter moved an application under Section 254 of the Act which was allowed by the Tribunal and the order dt. 7th Jan. , 1990 was recalled. The Tribunal thereafter allowed the appeal by order dt. 4th Dec. , 1992. It is in this context that the Revenue has sought the reference of the above quoted question for the opinion of this Court.