MOHD. YASIN Vs. THE COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) By way of this appeal, the assessee has challenged the judgment and order of the Tribunal whereby the Tribunal has partly allowed the appeal of the assessee and dismissed the appeal of the Department.

(2.) The facts of the case are that the search operations were carried out on 16.5.1997. During the course of search operations the residential and factory premises of the assessee were covered and certain assets were found and seized, besides incriminating papers. The notice under section 158BC was issued to the assessee on 20.7.1998 requiring the assessee to papers a true and correct return of his total income including the undisclosed income within 45 days of service of the notice. In compliance, no return was filed up to 16.3.1999 and therefore a show cause notice was issued along with a notice under section 142(1) of the Act on 16.3.1999 requiring the assessee to furnish explanation with regard to the assets found and seized from his premises and also to explain all the incriminating seized papers. The return was filed on 29.4.1999 declaring therein undisclosed income of Rs. 30 lakh's. While furnishing the return a brief note was annexed describing therein the history of the assessee and also the basis of showing such undisclosed income. The brief note so annexed is reproduced hereunder for ready reference:-

(3.) This Court while admitting the appeal framed the following substantial questions of law vide order dated 6.3.2002:-