COMMISSIONER OF INCOME TAX Vs. LEADER ENGG WORKS

JUDGEMENT

(1.) IN this appeal filed under S. 260A of the Income-tax Act, 1961 (for short, 'the Act'), the appellant has sought determination of the following questions of law :

(2.) THE respondent-assessee is a partnership concern comprising S/Shri D.D. Sehgal, K.K. Sehgal and J.K. Beri as partners having 12/32, 7/32 and 13/32 shares, respectively. For the asst. yr. 1978-79, the respondent filed return declaring total income as Rs. 16,01,330. Vide order dt. 19th March, 1981, the AO-ITO, Special Circular, Jalandhar made assessment under S. 143(3) of the Act on a total income of Rs. 16,29,870. The order of the AO was modified by the CIT(A), Jalandhar, who passed order dt. 16th Sept., 1982, and determined the income of the respondent at Rs. 15,14,551. That order was upheld by the Income-tax Appellate Tribunal, Amritsar Bench, Amritsar (for short, the Tribunal'). Subsequently, the AO issued notice under S. 147(a) r/w S. 148 of the Act and called upon the respondent to show-cause against the proposed addition of Rs. 1,59,807 collected in the form of Central sales-tax. After hearing the representative of the respondent, the AO passed order dt. 26th Sept., 1990, vide which he made addition of Rs. 1,59,807. On appeal, the CIT(A) passed order dt. 15th Oct., 1992, for deleting the said addition by recording the following observations :

(3.) IN our opinion, there is no merit in the argument of Shri Sawhney and questions sought to be raised by the appellant cannot be treated as substantial questions of law requiring determination by this Court because the same stand answered by the Division Bench in the case of Sirsa Industries (supra). In that case, the Division Bench considered the correctness of the view taken by the learned single Judge in the context of the apparent conflict between the decisions of the Supreme Court in Kedar Nath Jute Mfg. Co. Ltd. vs. CIT (1971) 82 ITR 363 (SC) : TC 16R.668 and Chowringhee Sales Bureau (P) Ltd. vs. CIT 1973 CTR (SC) 44 : (1973) 87 ITR 542 (SC) : TC 13R.326. The Division Bench reversed the view taken by the learned single Judge and held as under :