SUDAMA SINGH THROUGH ITS KARTA SHRI AKHILESH KUMAR SINGH Vs. ASSISTANT COMMISSIONER OF INCOME TAX AND ORS.

JUDGEMENT

(1.) WE have heard learned Counsel for the parties.

(2.) PURSUANT to a search and seizure operation conducted on 21.11.1996 an amount of Rs. 5,24,546/ - was found in three accounts of Mr. Sudama Singh held jointly with his wife and sons. This amount was in deposit with the Canara Bank of Jamshedpur. A notice Under Section 158BC was issued to Mr. Sudama Singh asking him to file a return for the block period 01.04.1986 to 21.11.1996. Thereupon Mr. Sudama Singh filed a Return of income on 24.07.1997 in the status of HUF showing himself as Karta. No return was filed by him in his individual capacity. Against the assessment of Sudama Singh (individual), the matter was taken to the I.T.A.T. by way of IT(SS) A. No. 100/Pat/1997. It was pleaded by Mr. Sudama Singh that the deposits, earning interest income, was made out of agricultural income of Sudama Singh (HUF). The plea was accepted by the Tribunal which decided the appeal by order dated 27 -9 -2001, observing that the interest be deleted from the block return under consideration i.e. Sudama Singh (individual), and the same may be considered in the hands of Sudama Singh (HUF). Thereafter a notice dated 28 -3 -2003 (Annexure 3 to this Appeal) was issued to Sudama Singh (HUF). At the top of the notice it is mentioned that it is Under Section 158BC read with Section 158BD of the Income Tax Act. However, in the body of the notice Section 158BC has been scored out and only Section 158BD is indicated. Taking advantage of this technical lapse a reply dated 21 -7 -2003 was submitted by the new Karta of HUF namely Akhilesh Kumar Singh, S/O Sudama Singh saying that a Return of income had already been filed on 24 -7 -1997 and that the assessment of HUF is barred by limitation. It was also stated in that reply that Section 158BD did not apply and it was prayed that the proceeding be dropped.

(3.) TO continue with the facts, the A.O. assessed the HUF. Against the order of assessment of HUF an appeal was filed before the I.T.A.T. which has been dismissed by the I.T.A.T. by order dated 13.06.07. The said order of I.T.A.T. is under challenge in this appeal.