SERAJUDDIN & BROTHERS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE instant appeal has been preferred against the judgment and order dated 28th February, 2003 of the learned Tribunal for the assessment years 1995 -96 to 1998 -99. The above appeal was admitted by an order of this Court dated 17th November, 2003 on the following substantial questions of law: -

(2.) THE assessee -appellant is a partnership firm within the meaning of Indian Partnership Act, 1932 and is regularly assessed to tax under the Income Tax Act, 1961 (hereinafter referred to as the said Act). The appellant -assessee had filed the returns for the previous years relevant to assessment years 1995 -96 to 1998 -99. The returns filed for the assessment year 1995 -96 was accepted as such under Section 143(1)(a) of the Act by issue of intimation dated September 24, 1996. The said intimation was rectified on January 27, 1997 by granting interest under Section 244A. The returns filed for the assessment years 1996 -97 was also similarly accepted by issuing a notice under Section 143(1)(a) of the Act on January 14, 1998 with a marginal increase of the returned income by making a prima facie adjustment with reference to provisions of Section 43B. The returns filed by the appellant -assessee for the year 1997 -98 was also accepted by issue of intimation under Section 143(1) (a) of the Act on March 10, 1999. The returns filed for the assessment year 1998 -99 by the petitioners was accepted by issue of intimation dated March 9, 1999 under Section 143(1)(a) of the Act.

(3.) MR . Khaitan, learned Senior Counsel appearing for the appellants submits that since it is an old appeal this Court instead of remanding the matter for fresh hearing by the learned Tribunal on the ground of not giving opportunity of hearing should be decided by this Court on its merit. He submits that for the purpose of Explanation 3 to Section 40(b)(v) the appellant took into consideration its net profit as shown in the profit and loss account which included granting consultancy fees, interest on bank and company deposit, profit on disposal of cars used in the business and interest on advance tax and those items of incomes were shown in the return under heading 'income from other sources'.