TMI Blog1980 (8) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... sment was completed ex parte under s. 23(4) of the old Act, on total income of Rs. 3,84,213 in the status of "resident but not ordinarily resident ". The assessee filed an application under s. 27 of the old Act which was accepted on May 18, 1957, and the proceedings were commenced de novo from the return stage. In the course of the reassessment proceedings, the ITO required the assessee to explain and prove the nature and source of various deposits. The assessee explained that deposits in banks, jubilee bonds and in the firm, M/s. Hindustan Rayon and Woollen Textile Mills in the name of the assessee in the relevant accounting year when the assessee was out of India, were made by the father, S. Narain Singh, who had gifted these amounts to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... following items: Rs. (i) Deposits in the name of the assessee with M/s. Hindustan Rayon Woollen Textile Mills Ltd. on 1-9-1945. 47,000 (ii) Out of deposits of Rs. 70,000 in the Punjab National Bank Ltd., Hall Bazar, Amritsar, in November and December, 1945, in the name of M/s. B. H. Singh and Company 63,860 -------- Total 1,10,860 -------- Thus, out of the total addition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessment ? (ii) Whether, in view of the facts and circumstances of the case, the Tribunal was legally justified in holding that s. 34(1)(a) was applicable and not s. 34(1)(b) and proceedings started u/s. 34 after the expiry of four years were not barred by time ? (iii) Whether, in view of the facts and under the circumstances of the case, the Tribunal was legally right in holding that Rs. 47,000 credited in the name of the assessee in the books of M/s. Hindustan Rayon Woollen Textile Mills Ltd. and Rs. 35,860 out of deposits in the name of M/s. B. H. Singh Co. in the Punjab National Bank, Amritsar, as income of the assessee liable to tax under the Indian Income-tax Act, 1922 ? (iv) Whether, by reason of the omission to summon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounsel for the assessee contends that if this court answers the said question in favour of the assessee and it is held that the assessee was " non-resident ", in that case the assessee cannot be held to be guilty, having not disclosed the facts " fully and truly " in his return which was originally filed by the assessee. As regards the addition of two items which have been referred to above, the learned counsel for the assessee contends that the Tribunal itself came to the conclusion that the ITO had violated the principles of natural justice in refusing the prayer of the assessee for summoning of the evidence and thus the assessee had been prejudiced. Paragraph 6 of the order of the Tribunal may conveniently be reproduced: " 6. After hea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ored and irrelevant considerations came in would entitle us to hold that question No. (iii) sought to be referred is not a question of fact, but a question of law. To similar effect are our observations a regards the addition of Rs. 35,860. The case of the assessee was that his father, Narain Singh, had been giving gifts in the form of money to him at various stages and to prove this, the assessee had requested the ITO to summon Shri Narain Singh to prove his case, which prayer was refused and in the view of the Tribunal, this prayer was wrongly refused by the ITO. Therefore, on the same analogy, as already observed, in connection with the addition of a sum of Rs. 47,000, questions Nos. (iii) and (iv) which concern the addition of the above ..... X X X X Extracts X X X X X X X X Extracts X X X X
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