VIDYA SAGAR Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE Income -tax Appellate Tribunal, Chandigarh Bench, Chandigarh (for short, "the Tribunal"), has, in compliance with an its opinion : "Whether the Tribunal was correct in law in holding that the ITO had rightly invoked the provisions of s. 147(a) of the IT Act, 1961, so as to bring to tax the alleged unexplained investments of Rs. 7,500 and Rs. 26,500 in the asst. yrs. 1969 - 70 and 1970 -71, respectively -

(2.) THE assessee along with his brother - -late Shri Siri Ram constructed commercial properties Nos. 49, 50 and 51 in 1970. The bifurcation of the expenditure involved in the construction of the properties is as under :

(3.) FOR the asst. yrs. 1969 -70 and 1970 -71, the AO finalised the assessment under s. 143(1) of the Act without making any addition. However, after the decision of the appeals filed in relation to the asst. yr. 1971 -72, he issued notices under s. 147(a) and made additions to the tune of Rs. 7,500 and Rs. 26,500 for the asst. yrs. 1969 -70 and 1970 -71, respectively, by treating the same as unexplained investment in the construction of the commercial properties. The appeals filed by the assessee were dismissed by the CIT(A) and further appeals were dismissed by the Tribunal vide its be made the basis for initiation of action under s. 147(a) of the Act.