COMMISSIONER OF INCOME TAX Vs. PANDEY NARSINGH SAHAY

JUDGEMENT

(1.) IN pursuance of this Court's order dt. 21st Feb., 1977, the Tribunal, Patna Bench B' has stated the case and the following question has been referred for the opinion of this Court :

(2.) THE assessment year in question is 1963 -64. The assessee late Sri Pandey Narsingh Sahay was engaged by Government of India to conduct the Kashmir conspiracy case on a certain stipulated fees besides some travelling allowances and daoly allowances for his tour to Kashmir. In respect of the asst. year 1963 -64, the assessee had declared a total income of Rs. 2.03,324. The assessee was assessed on a total income of Rs. 2,30,766 on 27th Feb, 1968 on the basis of the information furnished by him. The assessee was also assessed at Rs. 78,560 by order dt. 4th Feb., 1969 for the asst. year 1964 -65. It seems before the assessee was assessed on 27th Feb., 1966 for the asst. yr, 1963 -64, on 23rd Jan., 1968, some information was received from the Ministry of Home Affairs, Government of India giving details of payment made to the assessee in respect of his fees, travelling allowances, boarding and lodging allowances. This information from the Minsitry of Home Affairs indicated some discrepancy in the return filed by the assessee for the asst. year 1963 -64. The assessee reconciled the discrepancy and it was expand that a part of fees had already been shown in the earlier year, that, it for the asst. year 1962 -63. On this explanation furnished by the assessee the ITO completed the original assessment. The matter did not rest there. As a result of the audit objection, action was again taken for the asst. yr., 1963 -64 and the ITO assessed an amount of Rs. 44,250 in the asst. year 1963 -64 and thus this time the total income was determined at Rs. 2,89,378. This order of the ITO is at Annexure -A in the Statement of Case and forms part of the Statement.

(3.) IT is already stated above that for the asst. year 1964 -65, an assessment was made at Rs. 79,560 by order dt. 4th Feb., 1969. For the reasons given by the AAC for cancelling the reassessment for the asst. year 1963 -64, reassessment proceeding for the asst. year 1964 -65 were also cancelled and this order of the AAC is at Annexure -B appended to the statement of the case.