JUDGEMENT
S.K. Chander, Accountant Member -
(1.)THIS appeal by the assessee is directed against the order of the CIT(A) dated 9-1-1991 relating to assessment year 1988-89. There are various grounds in appeal for the appreciation of which the entire factual background of the case is required to be brought into focus. THIS is as under.
(2.)For the assessment year under appeal, original return was filed by the assessee on 30th August, 1988 declaring income of Rs. 60,475. This return was accepted under Section 143(1) of the Acton 30-12-1988. Thereafter in the case of M/s Dhir Jewellers in which the assessee is one of the partners, the Assessing Officer in the course of assessment of that firm, after noticing that the assessee had introduced Rs. 11ac as capital, asked the assessee to prove the source of capital brought in. In those proceedings, it was projected that Rs. 50,000 were received from Shri K.K. Dhir, IAS retired on 30-11-1987 and Rs. 60,000 were received from Capt. Rakesh Dhir s/o Shri K.K. Dhir. On the request of the assessee, these persons were summoned under Section 131 of the Act and statement of Shri K.K. Dhir was recorded on 21-8-1989 in the presence of the assessee when he in nutshell stated that the amount given belonged to the assessee. He stated that it was assessee's money and he merely provided the cover. On such facts, the Assessing Officer invoked the provisions of Section 147(6) by issuance of notice under Section 148 of the Act. Before we go further we would like to record that the reassessment proceedings were challenged in appeal before the first appellate authority who rejected the assessee's challenge and in appeal before us, this issue was raised and on hearing the parties and on examination of the evidence, we are satisfied that at the time the notice under Section 148 was issued, the factual position was such that the Assessing Officer could take action under Section 147(6). Therefore, this ground, we have rejected and we hold that reassessment proceedings were validly initiated.
Now returning back to the factual narration, we find that in the reassessment proceedings, the assessee filed written submissions on 28-2-1990 and there was discussion with the assessee by the Assessing Officer on the various issues involved. There were some administrative interactions and thereafter further process of assessment continued with the summoning of Shri K.K. Dhir and Capt. Rakesh Dhir s/o Shri K.K. Dhir. What happened during the course of assessment is recorded in the impugned assessment order made under Section 143(3) read with Section 147(6) dated 30th March, 1990. The Assessing Officer computed the total income by taking the share of profit of the assessee from two firms in which he is a partner, namely, M/s Dhir Jewellers, Ludhiana and M/s Dhir Import and Export alongwith the additions of Rs. 50,000 on account of credit from Sh. K.K. Dhir and Rs. 60,000 on account of credit from Capt. Rakesh Dhir. In addition to this, the amounts received by the daughters of the assessee Miss Mukta Dhir and Miss Shilpi Dhir of Rs. 20,000 each were added to the total income of the assessee. An amount of Rs. 9,000 on account of household expenses was also added. The total income was determined at Rs. 2,28,130 after allowing certain deductions. This was challenged in appeal.
(3.)BEFORE the CIT (Appeals), the assessee appeared through his counsel and the Assessing Officer looked after the interest of the Revenue in appellate proceedings. After hearing both the sides, the CIT (Appeals) upheld the additions and dismissed the appeal.
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