COMMISSION OF INCOME TAX Vs. TARACHAND SUBHKARAN

JUDGEMENT

(1.) THESE are six applications under s. 256(2) of the IT Act, 1961, by which the CIT, Rajasthan I, Jaipur, has applied for a direction to the Tribunal, Jaipur Bench, Jaipur, to state a case and make a reference of certain questions of law said to arise from its order in IT Appeals No. 631, 670, 671, 683, 769 and 770/JP all of 1972-73 dt. 7th March, 1974 to the High Court for its opinion.

(2.) THE facts giving rise to these applications for reference, briefly stated, are as follows : Tarachand Subhkaran, Sri Ganganagar (hereinafter referred to as `the assessee') is a registered firm which was assessed to tax on income derived from its business in sale of gold any silver ornaments. THE original assessments for the years 1962-63 and 1963-64 were completed on 13th Sept., 1963 and 23rd July, 1966 respectively. It appears that sometime in the month of March, 1970, the IT Department came in possession of a duplicate set of books of account maintained by the assessee during the relevant years viz., ledger and cash book for the asst. yr. 1962-63 and ledger for the asst. yr. 1963-64 wherein several transactions pertaining to the assessee which were not shown in its original books of account on the basis of which the assessments were made, were noticed.

(3.) THE applications are, therefore, allowed. We directed the Tribunal to refer the following questions for the decision of the Court :-- In D.B. Income Tax Cases No. 117 and 120 of 1975 : Whether, on the facts and circumstances of the case, the Tribunal was justified to hold that the re- assessment proceedings were void ab initio and to reject the Departmental appeal on that ground ? In D.B. Income Tax Cases No. 118 and 122 of 1975 : Whether, on the facts and circumstances of the case, including the facts that the ledger in respect of the asst. yr. 1962-63 was admittedly written by Tarachand, the Tribunal was justified to hold that the action under s. 147 of the IT Act, 1961 was not validly initiated by the ITO and to quash the re-assessment proceedings on that ground ? In D.B. Income Tax Cases No. 119 and 121 of 1975 : Whether, on the facts and circumstances of the case, the Tribunal was justified to hold that the action under s. 147 of the IT Act, 1961 was not validly initiated by the ITO to delete the additions made to the assessee's total income in re-assessment proceedings on that ground ?