COMMISSIONER OF INCOME TAX Vs. THAKUR DAS AIDASANI

JUDGEMENT

(1.) THIS is a reference made at the instance of Revenue (CIT) under s. 256 (2) of the IT Act to this Court for answering following two questions of law which arise out of an order dt. 28th Feb. , 1992, passed in ITA Nos. 624 to 627/ind/1990 : "1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the notice issued under s. 148 of the Act was illegal?

(2.) WHETHER, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the returns filed by the assessee were under Amnesty Scheme ?" 2. The assessee was assessed for the years 1978-79 to 1981-82. On 21st/22nd Jan. , 1986, a search operation as contemplated under s. 132 of the Act, as it had its application in the year 1986, was carried out by income-tax sleuths in the business and residential premises of assessee. It is in this search operation, one diary was seized by the taxing authorities. This diary contained several information regarding substantial investment made by assessee in the business of scooters, mopeds, three-wheelers, shares, lands and moneylending not only in the name of assessee but also, in the names of other family members/relatives. In these proceedings, the statement of assessee was also recorded under s. 132 (4) of the Act.

(3.) IT is this event that gave rise for issuance of notice under s, 148 of the Act by AO to assessee for the asst. yrs. 1978-79 to 1981-82. The AO sought approval of CIT as required under the Act for issuance of notice of reassessment under s. 148 of the Act and then accordingly, served the reassessment notices on 28th July, 1986, in respect of asst. yrs. 1978-79 to 1981-82. In the meantime, the assessee also filed returns on 31st March, 1986 under the Amnesty Scheme which was then in force.