BRIJESH LAHOTI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is an appeal under Section 260a of the IT Act, 1981 (for short 'act' ).

(2.) THE facts briefly are that a search was conducted under Section 132 of the Act in the residential premises in which the appellant as well as his elder brother Dr. Rajendra Lahoti reside. During the search, books of account of the appellant were found, but not seized. On the basis of the said books of account, the appellant filed a return disclosing income from his profession at Rs. 44,800 under Section 139 (4) of the Act on 31st March, 1997. Thereafter, the Asstt. GIT, Circle 1, Indore, made an assessment of undisclosed income of the appellant for the block period comprising of asst. yrs. 1988-89 to 1996-97. Aggrieved by the order of assessment dt. 29th Dec. , 1997, the appellant filed appeal before the Tribunal, Indore Bench, Indore, and the Tribunal held that for some of the assessment years, the appellant had no taxable income and for some other assessment years, the tax had been deducted at source. For the asst. yr. 1996-97, the appellant contended before the Tribunal that since he had maintained the books of account and in his return of income filed under Section 139 (4) of the Act after search, income of Rs. 44,800 was disclosed by him, his aforesaid income was not liable to be taxed as undisclosed income (under) Chapter XIV-B of the Act. The Tribunal vide order dt. 12th April, 2002, rejected the aforesaid contention of the appellant and held that the income of Rs. 44,800 for the asst. yr. 1996-97 was liable to be assessed as 'undisclosed income' Aggrieved by the order dt. 12th April, 2002 of the Tribunal, the appellant filed this appeal.

(3.) ON 17th July, 2002, this Court while admitting the appeal, formulated the following substantial question of law which arises for decision in this case : Whether, in the facts and the circumstances of the case, the Tribunal was justified in holding that the professional income of the asst. yr. 1996-97 amounting to Rs, 44,800 was undisclosed income at the hands of the assessee ?