INCOME TAX OFFICER Vs. BIJAY KUMAR SHARMA

JUDGEMENT

(1.) ALL the four cases are indeed an assortment having a common axis, identical questions. They are, therefore, disposed of by this common judgment to govern each one of them. Prosecutions launched by the income-tax authorities (hereinafter referred to as "the Revenue") against Bijaya Kumar Sharma and Mahabir Prasad Sharma (each of them referred to as "the assessee" by name) were dropped by the Additional Chief Judicial Magistrate (Special), Cuttack (in short, "A. C. J. M."), by the impugned order in each case. Such action is the subject-matter of challenge.

(2.) THE litigous history, undisputed in major particulars, sans unnecessary details runs as follows : Bijaya and Mahabir filed returns of income as required under the Income-tax Act, 1961 (in short, "the Act") before the Income-tax Officer, Balangir, for the assessment years 1987-88 and 1988-89 on March 30, 1990, and April 2, 1990, respectively. THE Assessing Officer did not accept the income returned. Basing on the materials collected during a search conducted in the assessee's premises, it was concluded that there was concealment of income. THE main basis for enhancement was the conclusion that a large number of bank drafts were encashed in the State Bank of India, Kantabanji, by many unknown persons who had been identified by the assessee. In the course of assessment proceedings, the assessee failed to produce those persons, and even could not give their address and submitted evasive replies. THE Assessing Officer held that the bank drafts related to concealed income of the assessee. THE Commissioner of Income-tax, Orissa, gave sanction for lodging a complaint as according to him, it was evident that the assessee had wilfully attempted to evade tax, etc., and had made false statements in the verification. According to him, additions were made after giving detailed reasons. At this juncture, it is necessary to note the income returned, assessed, the amount of bank drafts involved and the suppressed turnover estimated in relation to such drafts for 1987-89. THEy are as follows :

(3.) APPLICATIONS are accordingly disposed of.