PYARELAL MITTAL Vs. ASSISTANT COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS appeal under Section 260A of the Income Tax Act, 1961 has been preferred challenging the order date 31.5.2002 passed by the Income Tax Appellate Tribunal, Guwahati Bench in I.T.A. No. 49(Gau) of 1998 relevant for the assessment year 1993 -1994.

(2.) THE appeal was admitted on 10.1.2003 for hearing on the following questions of law:

(3.) THE appellant carries on the business of stock and share brokership having its office at Fancy Bazar, Guwahati and owns two firms, namely, Tokofin and Associate and Mittal Investors. In pursuance of search conducted in the business as well as residential premises of the appellant on 22.10.1992 and 23.10.1992, books of account, share certificates, cash amounts were found. The appellant filed his return of income on 30.3.1995 showing a total income of Rs. 1,28,030. Notices under Section 143(2) were issued whereupon the representative of the appellant appeared and explained the return of income with reference to the seized documents and other materials on record. The Assessing Officer assessed the total income at Rs. 25,66,270 and computed the tax payable at Rs. 23,40,409 inclusive of surcharge and interest. The Assessing Officer also directed initiation of penalty proceeding under Section 271(1)(c). The Assessment Officer computed the total income in the following manner: