ANAND KUMAR SARAF Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This appeal arises out of an order passed on March 31, 1989, by a learned single judge of this court, dismissing the writ petition filed by the appellant petitioner. The relevant facts leading to this appeal are as under : The appellant is being assessed to both income-tax and wealth-tax for last several years. During the previous years relevant to the assessment years 1980-81 to 1985-86, the appellant writ petitioner derived income from proprietary business carried on by him at Surat in the names of Messrs. A.K. Textiles and Messrs. Rachna Textiles and at Calcutta in the name of Messrs. A.K. Saree Centre. The business of the said concerns was that of buying and selling sarees. During September 30, 1980, to January 17, 1983, the appellant writ petitioner operated a current account with the Oriental Bank of Commerce, Surat, in the name of his proprietary concern, Messrs. A.K. Textiles. During the period from June 9, 1983, onwards, the appellant writ petitioner operated another current account with the Oriental Bank of Commerce, Surat branch, in the name of Messrs. A.K. Textiles. During the period from October 9, 1983, the writ petitioner operated a current account with the State Bank of India, Tharpa Bazar, Surat, in the name of his proprietary business "Rachna Textiles". Further, during the period from May 3, 1979, to April 20, 1983, the appellant writ petitioner operated a current account with Catholic Syrian Bank Ltd., Burra Bazar Branch, Calcutta, in the name of his proprietary concern "Messrs. A.K. Saree Centre".

(2.) It is an admitted fact that the appellant writ petitioner did not include the income derived by him from the aforesaid three proprietary concerns in his returns of total income filed in respect of the previous years relevant to the assessment years 1981-82 to 1985-86.

(3.) On or about March 7, 1986, a search was conducted by the income-tax authorities in exercise of the powers vested in them under Section 132(1) of the Income-tax Act, 1961, at the residential premises of the appellant writ petitioner at P-2, Kalakar Street, Calcutta, as well as at the business premises of five different firms, namely, "Jaree and Saree Stores", "Saraf Saree Centre", "Annapurna Textiles", "Sanwalram Raj Kumar" and "Gouri Shankar Saraf" at 212, Mahatma Gandhi Road, as well as at Ramkumar Rakshit Lane, Calcutta, In the course of the said search, certain jewellery and ornaments and a sum of Rs. 2,600 in cash were found in the bedroom of the appellant writ petitioner. None of these items were seized by the income-tax authorities. On the same date, namely, March 7, 1986, the business premises of the partnership firm, Messrs. Annapurna Textiles, Surat, of which the appellant writ petitioner, was a partner in his capacity as karta of a Hindu undivided family was sealed by the income-tax authorities. Subsequently, on March 26, 1986, the seals on the said business premises of the said Annapurana Textiles, Surat, were removed and the searching officials came across certain cheque books and pay-in-slips in respect of the two bank accounts, namely, Current Account No. 253 with the State Bank of India in the name of Messrs. Rachna Textiles and the Current Account No. 1469 with the Oriental Bank of Commerce in the name of Messrs. A.K. Textiles. These two were the proprietary concerns of the appellant writ petitioner. The income of these two proprietary businesses had not been disclosed by the appellant writ petitioner in the income-tax returns filed by him so far. These cheque books and pay-in-slips were seized from the office of Messrs. Annapurna Textiles and the fact of such seizure was noted in the panchnama drawn in the name of the said firm.