Decided on August 24,2017

Shri. Arunkumar J. Muchhala Appellant


VIBHA KANKANWADI,J. - (1.) This appeal challenges an order of the Income Tax Appellate Tribunal dated 30072014.
(2.) Shri. D. C. Jain, appearing for appellate has submitted that the questions of law at page No. 20 and 21 of the paper book are substantial questions of law deserving admission of this appeal.
(3.) The factual matrix leading to the appeal, as noted by Assessing Officer are that appellant had filed return for the Assessment Year 1996-97 on 27-12-1996 declaring total income at Rs. 6,00,570/. The return was processed under section 143 (1) (a) of the Income Tax Act, 1961 (for short I.T. Act), the case was taken up for scrutiny. The assessee had got income from rent, share of profit from R. F., Salary and income from other sources. Assessee had also returned the income of his minor children amounting to Rs. 3,15,459/. Notice under section 143 (2) of the I.T. Act was issued on 8071998 fixing the date of hearing on 28071998. Nobody appeared on behalf of assessee. A notice under section 274 (1) (b) of the I.T. Act was therefore, issued for said default fixing hearing on 781998 and another notice dated 30071998 under section 142 (1), fixing the hearing on 07081998 was issued. Appellant was called upon to furnish information. Again, nobody attended the hearing, however, a letter dated 06081998, addressed by M/s. D.C. Jain, Advocates was received by the office on 12081998. It was mentioned by the Advocate that his client would require 15 days to comply with details. Said Advocate attended the hearing on adjourned date and again sought time for the preparation. Nobody attended the next adjourned date i.e. 10091998. Once again, notice under section 271 (1) (b) r/w. 274 of I.T. Act was issued and next date of hearing was informed. Some details were filed on 24091998. However, the details in respect of points Nos. (I), (ii) and (ix) to (xix) of notice under section 142 (1) dated 30071998 were not filed. Learned Advocate was asked to file proof of NRI gift received. There was no compliance of the same on 07101998, but thereafter a letter was received on 23101998, stating that details are under preparation. Again there was no compliance on 06111998 and therefore, notice was issued. Advocate attended the date of hearing on 19111998. He was requested to give details as under : (i) Details of N. R. I. Gift along with nature of relationship with donee i.e. the assessee. (ii) Details in respect of the following remaining items in the notice under section 142 (1) dated 30071998; item Nos. (i), (ii), (ix) to (xix), (iii) Letter of Authority Thereafter, also on some occasions, the matter was not attended and then when notices were issued, the assessee took time on the point of preparation. Further information was called from the Assessee through Advocate on 21011999. However, same response was received from the Assessee. It was submitted on behalf of assessee on 11031999, that the loan and interest statement was under preparation and copy of the account of 8 parties from whom loans were taken with confirmations were under preparation. Further opportunity was not given by the Assessing Officer, taking into consideration the response and attitude of the appellant.;

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