SANJAY KUMAR JAIN Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) By this application the applicant prayed that the Tribunal be directed to refer the questions of law answered in paragraph A of this application for the opinion of this court.

(2.) The petitioner-assessee deals in jute goods and real estate business. There was a search carried out by the Income-tax Department in August, 1995, at the residence and office of the petitioner under Section 132 of the Income-tax Act, 1961. During the search the Department has seized various documents, which includes identifying as GNP 1, 2 and 3 and GNP 15. During the course of the investigation, the assessee has admitted that the transaction in GNP 1, 2 and 3 and also GNP 15 were not there but those were the entries of undisclosed income. But in the statement he clarified that the amount referred to in the entries in GNP 15 which was up to April 25, 1985, has been shown as cash credit in GNP 1, 2 and 3 and on the basis of GNP 1, 2 and 3 the peak credit was calculated at Rs. 1,08,13,090. Therefore, the entries in GNP 15 showing the sum of Rs. 41,54,000 was part of the peak credit. That was not accepted by the income-tax authorities and/or by the Tribunal. This court rejected the application filed by the assessee under Section 256(2) of the Income-tax Act. The special leave petition was filed by the assessee was also rejected.

(3.) Heard learned counsel for the parties. Learned counsel for the assessee/ applicant submits that rejection of the special leave petition without reasons does not bar a review petition. If there is an apparent mistake, that can be corrected. He placed the reliance on the decision of the apex court in the case of Kunhayammed v. State of Kerala. He further submits that peak of the cash credits found in GNP 1, 2 and 3 was taken for the purpose of income-tax. The entries amount of Rs. 41,54,000 found in the GNP 15 should not be ignored as that was unaccounted money before the period of entries in GNP 1, 2 and 3 and that was subsequently introduced as cash credit found in GNP 1, 2 and 3.