ANIL KUMAR KUNDU Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) : In this reference under s. 66(1) of the IT Act, 1922, the following question has been raised for decision by this Court :

(2.) THE assessee, Anil Kumar Kundu of Midnapore, is one of the partners of the firm of Hrishikesh Madan Mohan Kundu, a firm registered under s. 26A of the IT Act, 1922. Few days after the commencement of the accounting year, each of the partners contributed some capital to the said firm. According to his share the assessee, Anil Kumar Kundu, contributed a sum of Rs. 3,500 towards capital of the firm.

(3.) THE ITO negatived this contention raised by the assessee and when the matter ultimately went up before the Tribunal, it affirmed the decision of the AAC, who did not interfere with the order of the ITO. THE Tribunal came to the conclusion that besides merely stating that the assessee was the partner of the firm and was sharing profits to an extent, neither the applicant made any declaration about the cash credits in the return nor did he declare at the time of the assessment of the firm that the cash credit in question was introduced by him from his income. On such a conclusion, it was found by the Tribunal that the ITO had reason to believe that the assessee did not disclose fully and truly all the material facts that he introduced the amount of cash credit and about its source and, under such circumstances, the ITO was entitled to reopen the case under s. 34(1) (a).