PARVEEN KUMAR Vs. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) THIS appeal by the assessee is directed against the order dated September 26, 1997, of the Assessing Officer and order dated September 23, 1999, of the Income -tax Appellate Tribunal, whereby on search of the premises of the assessee undisclosed income to the tune of Rs. 8,98,550 having been found, tax liability at the rate of 60 per cent, of such income was determined.

(2.) THE relevant facts may be summed up thus. On June 21, 1996, residential premises of the appellant/assessee were searched by the income -tax authorities. Notice was issued on July 3, 1996, under Section 158BC of the Income -tax Act, to the appellant/assessee calling upon him to file return of his income for the block period April 1,1986, to June 20,1996, in Form 2B. There was no response from the appellant/assessee. He was reminded, vide letter dated April 11, 1997. Reminder also did not fetch any response. Ultimately, notice under Section 142(1), along with a detailed questionnaire, was served upon the assessee on May 28,1997. He was called upon to appear on June 5, 1997, and file return, failing which assessment was to be made ex parte. The appellant/assessee appeared along with a chartered accountant. The Assessing Officer, based on the reply to the questionnaire submitted by the assessee and other records and proceedings of search and seizure, held that the appellant/assessee had the following items of undisclosed income:

(3.) THE appeal was admitted on the following substantial question of law, vide order dated November 16, 2000: Whether, in the facts and circumstances of the case, additions sustained by the Income -tax Appellate Tribunal of Rs. 75,000 is legally sustainable or is in contravention of Section 158BB/158BC of the Income -tax Act, 1961?