R.K. Agrawal, J. - (1.) This appeal has been filed against the impugned final judgment and order dated 17.11.2005 passed by the High Court at Calcutta in Income Tax Appeal No. 174 of 2005 whereby a Division Bench of the High Court dismissed the appeal of the appellant herein while upholding the judgment and order dated 29.04.2005 passed by the Income Tax Appellate Tribunal (in short 'the Tribunal'): 'D' Bench, Kolkata in IT(SS) A No. 174/Kol/2003.
(2.) Brief facts: (a) The Appellant is a partner in a Partnership Firm by name "Nityakali Rice Mill" (in short 'the Firm'). On 06.11.1998, a search was conducted at the business premises of the Firm by the Income Tax Department and several documents/books including a sum of Rs. 34 lakhs were seized. (b) Thereafter, on 09.09.1999, a notice was issued to the Appellant by the Assessing Officer under Section 158BC of the Income Tax Act, 1961(in short 'the IT Act') to prepare and file a true and correct return of his total income including the undisclosed income in respect of which he was assessed for the block period 1989-90 to 1999-2000. On the very same day, a separate notice under Section 158BC was issued in the name of the said Firm by the very same Assessing Officer. Pursuant to the same, the Appellant filed his block return for the aforesaid period on 08.11.1999 declaring his aggregate undisclosed income at Rs 14 lakhs. (c) Meanwhile, an application was filed by the Appellant before the Additional Commissioner of Income Tax, Asansol, praying for his intervention and issue of necessary direction to the Assessing Officer under Section 144A of the IT Act. On 14.08.2000, the Additional Commissioner perused the records and directed the Assessing Officer to take appropriate steps in order to determine the income of the assessee. The Additional Commissioner issued separate directions under Section 144A of the IT Act in the cases of M/s. Nitya Kali Rice Mill, Kartick Dutta, Shambhu Mondal and Tamal Mondal and the Draft Assessment Order under Section 158BC of the IT Act was sent to the Joint Commissioner of Income Tax, Burdwan, Range-2 for approval which was returned by the Joint Commissioner on 16.11.2000 stating that no warrant for authorization was issued in the names of the persons mentioned in the Draft Assessment Order. (d) On 20.11.2000, Block Assessment Order was passed by the Deputy Commissioner of Income Tax stating that the return filed in the case of the Firm should be accepted as 'Nil' income and also directed to initiate proceedings against the Appellant for the assessment of undisclosed income for the block period under Section 158BD of the IT Act. Pursuant to the order dated 20.11.2000, a fresh notice under Section 158BC read with Section 158BD of the IT Act was issued to the Appellant to file the block return for the period 1989-90 to 1999-2000. Consequently, the Appellant intimated the Assessing Officer through a letter dated 21.10.2002 that the block return has already been filed for the aforesaid period on 08.11.1999. Further, the issue of fresh notice does not extend the time allowed for completion of the assessment under Chapter XIV of the IT Act. (e) On 29.11.2002, the Assessing Officer passed the assessment order while assessing the undisclosed income of the Appellant to the tune of Rs. 3,48,56,430/-. Being aggrieved, the Appellant preferred an appeal being No. 133/CIT(A)/Bwn/02-03 before the Commissioner of Income Tax (Appeals). Vide order dated 18.09.2003, the Commissioner of Income Tax (Appeals) held that the undisclosed income of the block period in the instant case should be taken in the aggregate sum of Rs. 66,55,911/- as against Rs. 3,48,56,430/- as assessed by the Assessing Officer. (f) Being aggrieved, the Appellant preferred an Appeal being No. IT(SS)/174/Kol/2003 before the Tribunal. At the same time, the Revenue also went in appeal by filing IT (SS) 178/K/2003 before the Tribunal. The Tribunal, vide order dated 29.04.2005, dismissed the appeal filed by the Appellant while partly allowing the appeal filed by the Revenue. Being aggrieved, the Appellant filed an appeal being No. ITA 174 of 2005 before the High Court. Vide judgment and order dated 17.11.2005, the Division Bench had dismissed the appeal filed by the assessee. (g) Being aggrieved by the judgment and order dated 17.11.2005, the Appellant has preferred this appeal before this Court.
(3.) Heard Mr. Salman Khurshid, learned senior counsel for the appellant and Mr. K. Radhakrishna, learned senior counsel for the respondent and perused the records. Point(s) for consideration:-;