SURENDER PAUL Vs. CIT, CHANDIGARH

JUDGEMENT

(1.) This order shall dispose of a bunch of three appeals bearing ITA Nos. 386 of 2004, 47 and 104 of 2005 as according to learned counsel for the parties, the identical questions of law and facts are involved therein. For brevity, the facts are being extracted from ITA No. 47 of 2005.

(2.) This appeal has been preferred by the assessee under Sec. 260A of the Income Tax Act, 1961 (in short "the Act") against the order dated 31.8.2004 (Annexure A -1) passed by the Income Tax Appellate Tribunal, Chandigarh Bench "A", Chandigarh (hereinafter referred to as "the Tribunal") in ITA No. 494/CHD/2001 for the assessment year 1994 -95. All the appeals were admitted by this Court vide order dated 9.5.2006 for consideration of the following substantial questions of law: -

(3.) A few facts necessary for adjudication of the instant appeal as narrated therein may be noticed. A search and seizure operation was carried out on 30.8.1993 by the Income Tax Department at the residential as well as business premises of the family of the assessee and cash, jewellery, FDR/IVPs and promissory notes were seized. During the course of search, a disclosure of Rs. 3 lacs was made under Sec. 132(4) of the Act. The said amount was surrendered subject to no penalty under Sec. 271(1)(c) of the Act. A further disclosure of Rs. 6 lacs was made in the hands of Shri Dipti Lal, Shri Raj Kumar, Dipti Lal and Sons besides Rs. 3 lacs in the case of Shri Surinder Pal (the appellant herein) for the assessment year 1994 -95. The income tax return for the assessment year 1994 -95 was filed by the assessee on 23.5.1994 declaring the income at Rs. 4,70,000/ - inclusive of surrender under Sec. 132(4) of the Act. However, regarding the payment of taxes due thereon, a note was appended to the computation (Annexure P -3) to the effect that "to be adjusted against seized liquid assets and also out of liquidation of other assets with my assistance." The taxes on the returned income as per the assessee's own computation were: -