COMMISSIONER OF INCOME TAX Vs. MUKUL KUMAR

JUDGEMENT

(1.) HEARD learned Counsel for the Revenue. Inspite of notice nobody has appeared on behalf of the assessee. On an application Under Section 256(2) of the Income Tax Act (the Act) as it existed prior to the National Tax Tribunal Act, 2005 , this Court formulated the question of law and directed the Income Tax Tribunal, Patna Bench, Patna to state the case to this Court for its opinion. Accordingly the Tribunal stated the case in connection with R.A. No. 49 (Pat)/1997 arising out of I.T.A No. 432(Pat) /1994 relating to the assessment year 1990 -1991 on the following question of law: whether on the facts and in the circumstances, of the case, the Income -tax Appellate Tribunal was justified in quashing the order of the Commissioner under Section 263 specially when the assessee has not maintained any account and there is no material on record to show that enquiry was made regarding the genuineness of expenditure incurred?

(2.) THE assessments in question are of the assessment years 1990 -1991 of the assessee, Sri Mukul Kumar. On account of copyright of a grammar book gifted by the father of assessee in the year 1984. the assessee received a royalty income of Rs. 1,34,143/ - and claimed expenses of Rs. 1,05,717/ -.

(3.) The assessing officer allowed the expenses to the extent of 50% of the royalty income and completed the assessment Under Section 143(3) of the Act.