COMMISSIONER OF INCOME TAX Vs. DURLABHJI R Y

JUDGEMENT

(1.) BOTH these reference applications arise out of a common order passed by the Income-tax Appellate Tribunal, Jaipur, on July 29, 1988, allowing two appeals filed by the assessee against the orders passed by the Income-tax Officer, Central Circle-I, Jaipur, and the Commissioner of Income-tax (Appeals) and also a common order dated February 22, 1989, passed by the Income-tax Appellate Tribunal, Jaipur Bench, Jaipur, rejecting the applications filed by the Revenue for reference of the questions of law to this court. Income-tax Reference Application No. 63 of 1989 relates to the assessment year 1968-69 and Income-tax Reference Application No. 64 of 1989 relates to the assessment year 1967-68. Since these applications arise out of a common order, we consider it appropriate to decide both these applications by a common order.

(2.) THE facts which are necessary for the purpose of deciding these two reference applications are that for the assessment years 1967-68 and 1968-69, the assessee was assessed on March 31, 1969, and April 11, 1969, on a total income of Rs. 12,32,429 and Rs. 9,69,936, respectively. A notice under Section 147(a) was issued on March 30, 1976, in respect of the assessment year 1967-68. THE assessee filed his return under protest. On March 27, 1980, assessment was completed on a total income of Rs. 12,82,429 by making an addition of a sum of Rs. 50,000 under Section 69 of the Income-tax Act. This order was challenged by the assessee in appeal. THE Commissioner of Income-tax (Appeals) set aside this order on June 11, 1980. A second notice under Section 147(a) was issued on February 10, 1981, and was served on the assessee on February 12, 1981. THE assessment based on the second notice was made on February 28, 1985. In the meanwhile, on an appeal filed by the assessee before the Tribunal against the order dated June 11, 1980, the matter was remanded to the Commissioner of Income-tax (Appeals) by the Tribunal, vide its order dated July 22, 1981. THE Commissioner of Income-tax (Appeals), reheard the matter and the addition of Rs. 50,000 in the reassessment proceedings was deleted. In respect of the assessment year 1968-69, the Income-tax Officer, Central Circle-I, Jaipur, wrote a letter dated September 15, 1981, to the petitioner in which he was called upon to explain certain details in respect of the transactions made by the assessee during that year. THE assessee submitted a reply to the same on October 22, 1981. THE assessee also submitted several communications to the Income-tax Officer.

(3.) BEFORE we proceed to examine the order of the Tribunal in order to find out as to whether the Tribunal has committed any error of law, we may refer to the decision of the apex court in Sree Meenakshi Mills Ltd. v. CIT [1957] 31 ITR 28, wherein the apex court made the following observations on the power of the High Court to interfere with the orders passed by the Tribunal (headnote) :