OSWALD ANTHONY Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The assessee-appellant has filed this appeal under Section 260-A of the Income Tax Act, 1961 (hereinafter referred to as the Act) against the decision dated 21.12.2000 passed in I.T.A. No. (SS) 25 (Pat)/1998 by the Income Tax Appellate Tribunal, Patna Bench, Patna by which the Tribunal has upheld with modification the order dated 28th January, 1998 passed by the Assessing Officer, (Assistant Commissioner of Income Tax), Patna under Section 158-BC of the Act making assessment for the block period 1987-88 to 1997-98 (up to 27.11.1996).

(2.) The factual matrix for disposal of the appeal are that the appellant is a dental surgeon and employed under the Government of Bihar. One Dr. O.P. Diwakar was an employee of the Animal Husbandry Department and was a tenant in the house of the appellant situate at Road No. 20 Gardanibagh, Patna. He was involved in the Animal Husbandry Scam involving defalcation and misappropriation of amount of Rs. one thousand crores. A search under Section 132 of the Act was conducted against the said Dr. O.P. Diwakar, the appellant and others. In case of the appellant the search commenced on 27.11.1996 and concluded on 9.1.1997. Warrant of authorisation was issued for the search of the lockers at State Bank of India, Dujra Branch, Patna on 11th December, 1996 and the Central Bank of India, Bettiah on 9th January, 1997. The Punchnama issued for both the dates were in the name of the appellant and his mother-in-law Mr. Lily to bias etc. In case of search in respect of locker No. 14 at Central Bank of India, Bettiah, warrant of authorisation was issued on 11.12.1996 which was executed on 9th January, 1997 as per Panchanama. After the search, on 17.3.1997 the appellant was directed by the Assessing Officer to file return for the block period under Section 158 BC of the Act. A notice under Section 142 of the Act was also issued requiring the appellant to file a statement of all his assets and liabilities, whether included in the accounts or not, and whether standing in his name or in the name of someone else with regard to the dates mentioned in the aforesaid notice. The Assessee filed a reply to the notice under Section 142 of the Act wherein he promised that he is going to file his return, computation of income, capital account and balance sheet etc. in terms of the notice, but he did not file the return. However, during the assessment proceedings he filed certain data regarding his income during the block period. As the appellant did not comply with the requirements as mentioned in the notice under Section 142(1) of the Act, the Assessing Authority adopted best judgment assessment procedure under Section 144 of the Act on the basis of the information available on record and the information furnished by the assessee in his examination under Section 132 of the Act. During course of search the Assessing authority found that the appellant has salary income from the Government. This apart he has professional income from his private dental clinic running at Kurjeo and Danapur, income from House property and income from other sources and accordingly made the assessment under Section 158-BC of the Act for the block period by order dated 28.1.1998.

(3.) The appellant filed an appeal before the Tribunal and the Tribunal made certain modifications with regard to income and others and partly allowed the appeal and thus upheld the assessment with regard to block period within modifications.