TMI Blog1982 (9) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... ve the nature and source of some deposits and investments. After examining the evidence produced by the assessee, the ITO added a sum of Rs. 3,58,314 as income from undisclosed sources represented by the various bank deposits and investments, after including a sum of Rs. 15,000 invested in the purchase of agricultural land and Rs. 26,000 invested in the purchase of the property at Majitha Road. The ITO, in the reassessment proceedings, held the status of the, assessee is " resident but not ordinarily resident " as against the status " non-resident " assigned in the original assessment proceedings and further included a sum of Rs. 40,000 which was brought by the assessee at the time of his arrival in India from Africa in January, 1946, under the provisions of s. 4(1)(b)(iii) of the Act. The ITO also included Rs. 864 by way of interest received on the F.D. of Rs. 50,000 which was taken in the name of Sardar Narain Singh. Thus, the ITO completed the assessment on a total income of Rs. 4,17,464 by his order dated 23rd March, 1960. Feeling aggrieved from the order of the ITO, an appeal was preferred by the assessee. The AAC partly allowed the appeal and only a sum, of Rs. 1,10,860 as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... matter has come up before us for expressing our opinion on the aforesaid question. So far as question No. 1 is concerned, it may be observed that in I.T.R. No. 1 of 1976 (Dr. Surmukh Singh Uppal v. CIT, we have held that the proceedings under s. 34 of the Act were rightly initiated as the assessee had failed to disclose fully and truly the material facts at the time of the original assessment. In this view of the matter, there can be no gainsaying that the proceedings were rightly initiated under s. 34(1)(a) of the Act and are not barred by time as the same were started after four years. This brings us to question No. 2, what is required to be seen under this question is whether the Tribunal was legally right in holding 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 Act. The Tribunal has dealt with the item of Rs. 47,000 thus: " The next ground taken by the assessee is that the Appellate Assistant Commissioner was not justified in upholding an additi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are of the Opinion that the assessee has no case. The assessee neither produced the books of accounts of M/s. Gurdial Singh Inder Singh and Co. in support of its contention that the amount in question was first credited in the books of account of the above firm by his father and was later on transferred in the account of the assessee in the books of M/s. Hindustan Rayon Woollen Textile Mills Ltd., nor this amount of Rs. 47,000 finds place in the affidavit dated 25-9-58 filed by Sardar Narain Singh in which he has mentioned the various amounts gifted to the assessee. Since the amount in question was credited in the books of account of M/s Hindustan Rayon Woollen Mills Ltd. in the name of the assessee during the relevant accounting period and the assessee has not been able to prove the nature and the source of this amount, the authorities below were quite justified in including this amount towards total income of the assessee. Accordingly, we uphold the findings of the Appellate Assistant Commissioner in this respect." So far as the item of Rs. 35,860 is concerned, the relevant observations of the Tribunal appear in para. 19, which read as under : " After hearing the learne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 32 of its order, which read as under : " Apart from the above facts, we also find that the assessee was not allowed proper opportunity to lead necessary evidence before the Income-tax Officer. We find from the records that on 3-3-1960, the assessee addressed a letter to the Income-tax Officer wherein a request was made to summon the following evidence u/s. 37 of the Indian I.T. Act, 1922, at 4 the instance of the assessee : (1) Sardar Narain Singh Uppal, c/o. Narain Cold Storage Pvt. Ltd., Amritsar. (2) Account books of M/s. Gurdial Singh Inder Singh for the assessment years 1944-45 and 1945-46. (3) Account books of M/s. Hindustan Embroidery Mills for the period 1-4-1945 to 31-3-1946. (4) Account books of M/s. Narain Swadeshi Mills for the assessment year 1945-46. (5) Account books of M/s. Hindustan Woollen Rayon Textile Mills from 1-4-1945 to 31-3-1946. In reply to the above application the ITO informed the assessee that the " proceedings regarding the assessment year 1946-47 have already been closed". The ITO, therefore, rejected the assessee's application. The Income-tax Officer, however, passed the assessment order only on 28-3-1960, i.e., about twenty d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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