COMMISSIONER OF INCOME TAX Vs. VARDHMAN INDUSTRIES

JUDGEMENT

(1.) The instant appeal preferred under s. 260A of the IT Act, 1961, for short hereinafter referred to as "the Act", witnesses a challenge to the judgment and order dt. 19th Nov., 2009 passed by the learned Tribunal, Jodhpur, hereinafter referred to as "the Tribunal", rendered in ITA Nos. 501/Ju/2008 and 486/Ju/2008 disposing of the same analogously. We have heard Mr. K.K. Bissa, learned counsel appearing on behalf of the appellant and Mr. Suresh Ojha, learned counsel for the respondent.

(2.) Filtering out the unnecessary details, the facts in bare minimum indispensable for the present adjudication are that the respondent is an assessee under the Act. A survey under s. 133A of the Act was conducted on 25th March, 2003 at its business and office premises and consequently, its books of account and other documents including loose papers pertaining to asst. yr. 2003-04 were found and impounded. It submitted its return of income at Rs. 34,889 on 27th Sept., 2003 and eventually following an assessment under s. 143(3) of the Act, its taxable income was computed at Rs. 1,52,130. The assessee thereafter filed an application seeking permission to release his books of account and other records, as the assessment had already been completed and the demand on the basis thereof been paid.

(3.) The AO however subsequent thereto initiated reassessment proceedings under s. 148 of the Act on 23rd March, 2007 by scripting in essence that the assessee's books of account impounded following the survey did disclose that an income chargeable to tax i.e., Rs. 8,57,677 had escaped assessment in terms of provisions of Expln. 2(c) of s. 147 of the Act. The reassessment was thereafter completed on 15th Nov., 2007 at an income of Rs. 34,93,043 by making an addition of Rs. 33,72,583 as income from undisclosed sources on the basis of materials claimed to have been discovered during the course of survey.