COMMISSIONER OF INCOME TAX Vs. N.S. ICHOPONANI

JUDGEMENT

(1.) This appeal has been preferred under Section 260A of the Income-tax Act, 1961 (hereinafter referred to as "the Act") proposing the following substantial questions of law arising out of the order dated December 6, 2004 of the Income-tax Appellate Tribunal, Chandigarh Bench, Chandigarh (hereinafter referred to as "the Tribunal") passed in I. T. A. No. 855/Chandi/93 in respect of assessment year 1984-85:

(2.) The Assessee is engaged in the business of manufacturing of poultry feed and for the assessment year in question income declared by the Assessee was Rs. 15,350. After search on the premises of the Assessee and also the accountant of the Assessee on October 14, 1986, the Assessing Officer made assessment at income of Rs. 14,64,280. The Assessing Officer also levied penalty. On appeal by the Assessee, the addition was upheld except for reduction of the quantum to certain extent. Finally, the Tribunal sustained the addition to the extent of Rs. 6,70,781. Appeal arising out of the order of penalty was considered separately. The Tribunal held that since the addition was a result of disallowance, the Assessee could not be held to have concealed the particulars of income. The observations of the Tribunal are:

(3.) We have heard learned Counsel for the parties.