Ahluwalia Contractors India Ltd. vs Commissioner Of Income-Tax
2000 Latest Caselaw 857 Del

JUDGMENT

1. In this appeal under Section 260A(1) of the Income-tax Act, 1961 (in short "the Act"), the order of the Income-tax Appellate Tribunal (in short "the Tribunal"), passed in I. T. A. No. 810/Delhi of 1997 dated February 26, 1999, is under challenge. The relevant assessment year is 1991-92.

2. The background facts are as under :

The original assessment had been completed under Section 143. But subsequently proceedings were initiated under Section 147 of the Act on the basis of certain documents which were seized during a seizure operation conducted on March 12, 1994, in the premises of the assessee. The Assessing Officer recorded the following reasons for reopening the assessment :

"A search and seizure operation was conducted on March 12, 1994, in which certain incriminating documents were seized. Page 4 of annexure A-14, a photocopy of which is placed on record, discloses that S. Balbir Singh has paid by cash Rs. 14 lakhs and Mr. Ramesh Sindwani paid by cash Rs. 2 lakhs on different dates. Out of this receipt of cash has not been reflected in the regular books of account of the assessee. However, the payments mentioned against the cheque to the tune of Rs. 50,000, Rs. 3 lakhs and Rs. 7 lakhs from S. Balbir Singh are reflected in the books of account. Therefore, it is crystal clear that Rs. 16 lakhs has been received by the assessee for the assessment year in cash and outside the books. Both the persons have made payment against the property and the receipt in the hands of the assessee-company becomes the revenue received and is income chargeable to tax. On the basis of this piece of information I have reason to believe that Rs. 16 lakhs being income chargeable to tax has escaped assessment and to reassess the same notice under Section 148 issued."

In the proceedings under Section 147 read with Section 148 of the Act, additions were made in respect of the amounts which were not reflected and were held to have been received outside the books. The Commissioner of Income-tax (Appeals) dismissed the assessee's appeal, Further appeal before the Tribunal met with the same fate.

3. Learned counsel for the appellant submitted that the scope and ambit of Section 147 read with Section 148 does not permit such an action. Further it is submitted that the conclusions arrived at are not in line with the materials on record. Learned counsel for the Revenue supported the Tribunal's order and submitted that no question of law arises.

4. So far as the reasons recorded for reopening of the assessment are concerned the quoted portion goes to show that reasons did exist for entertaining a belief that income chargeable to tax had escaped assessment. Additionally, the conclusions of the Tribunal on the question whether there was any receipt beyond the books are essentially factual and have been rendered after taking into account relevant aspects. That being the position no question of law, much less a substantial question of law, is involved.

5. The appeal is dismissed,