RAMJAS NAWAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS appeal is directed against the order of Tribunal in case of Ram Jas Nawal vs. Asstt. CIT, Investigation, dt. 4th Jan., 1999.

(2.) THE search proceedings were conducted at the business and residential premises of the assessee on 18th Sept., 1996, and various lockers belonging to the assessee and his members of family were searched. THE search proceedings were continued from 18th Sept., 1996, to 25th Sept., 1996. Various items like valuables, assets, documents, jewellery and papers relating to investments were found and seized. THE statement of K.G. Nawal and members of his family were recorded at the time of search under s. 132(4) of the IT Act, 1961. THE statements were duly signed by the assessee Ram Jas Nawal and members of his family. Huge cash amount to the tune of Rs. 3,00,74,259 was found from various premises. Out of that assessee has explained Rs. 9,64,419 and balance amount of Rs. 2,97,09,940 was surrendered by the assessee for taxation. This amount was bifurcated into three hands i.e., Ram Jas Nawal and his two sons namely, K.G. Nawal and K.K. Maheshwari in equal proportion. THEreafter returns were filed. Though in the statement recorded during search, the assessee could not explain the profit of M/s Shree Products to the tune of Rs. 23,18,210 and also gifts shown in the papers seized but in the return the assessee retracted from his statement and claimed that Rs. 23,18,210 is income from the firm M/s Shree Products and gifts received were also genuine. THErefore, this amount was not offered from taxation in the income-tax returns. THE income pertains to the asst. yrs. 1987-88 to 1991-92 has been assessed.

(3.) HEARD learned counsel for the parties.