RAMA SINHA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE assessee has filed this appeal under S. 260A of the IT Act, 1961 (for short the "Act"), against the order of the Income tax Appellate Tribunal, Chandigarh Bench "B" (for short the "Tribunal"), dt. 5th Dec., 2000.

(2.) BRIEFLY stated the facts are that the assessment in this case for the asst. year 1984 85 was completed under S. 143(3) of the Act on 24th Jan., 1985, on the returned income of Rs. 14,920. Thereafter some information was received from the Central Bureau of Investigation, on the basis of which the AO issued a notice dt. 18th March, 1991, under S. 148 of the Act after obtaining necessary sanction of the Dy. CIT. In response to this notice, return was filed declaring an income of Rs. 14,917 on 21st May, 1991. The AO made reassessment under S. 147 of the Act at a total income of Rs. 11,37,060 vide order dt. 29th March, 1993. This order along with the demand notice was served by affixture as the service could not be made in the ordinary course. Aggrieved by the order of reassessment, the assessee preferred an appeal before the CIT(A), Shimla, on 15th April, 1993. In this appeal, the assessee challenged the validity of the initiation of proceedings under s. 147 as also the reassessment made thereunder. She further challenged various additions made by the AO as also the levy of penal interest under ss. 139 and 215/217 of the Act. The CIT(A) vide order dt. 23rd Sept., 1994, upheld the validity of the proceedings under S. 147 and the reassessment made thereunder. The levy of penal interest was also upheld. In respect of various additions, some were upheld while the others were remanded back for fresh adjudication by the AO. The assessee preferred a further appeal before the Tribunal. The Tribunal vide order dt. 5th Dec., 2000, upheld all the findings of the CIT(A) except on the issue of levy of penal interest under ss. 139(8), 215 and 217 of the Act. The levy of penal interest was quashed by the Tribunal.

(3.) WE have heard Mr. A. K. Mittal, the advocate, appearing on behalf of the assessee.