- (1.) The petitioner is carrying on the business of plying trucks and transport business on commission basis in the name and style of M/s. Data Carriers and Ayush Carrying Corporation. For the assessment year 2007-08, the petitioner also carried on the business of purchase and sale of betel nuts and catechu. The income tax department carried out a survey under Section 133A of the Income Tax Act (hereinafter referred to as the Act) on 7.11.2006 at the business premises and godown of the petitioner. During the survey, the income tax department found the stock of betel nuts and catechu to the value of Rs. 66,08,000/- and unexplained cash of Rs. 3,37,000/-. The petitioner was not maintaining any books of account. Loose papers were impounded by the surveying party showing an investment of Rs. 40,55,500/- outside the books of accounts. Based on the loose papers found during the survey, the petitioner gave his statement and offered to surrender the following amount for imposition of tax for the assessment year 2007-08:
(2.) Based on the aforesaid survey, a notice under Section 142(1) of the Act was issued to the petitioner. Instead of filing his return, the petitioner approached the Settlement Commission under Section 245C of the Act for settlement of his dispute. The Settlement Commission invited a report from the Commissioner of Income Tax under Section 245D(3) of the Act and, based on the perusal of the record and report and after hearing the parties, the Settlement Commission computed the income of the petitioner at Rs. 1,67,23,180/- and agricultural income at Rs. 68,000/-. The Settlement Commission, consequently, directed the Assessing Officer to compute the tax and charge penalty and interest as per the provisions of the Act. Based on the aforesaid order, a demand notice was issued. The petitioner, being aggrieved by the order of the Settlement Commission and notice of demand has filed the present writ petition.
(3.) Heard Sri Rakesh Ranjan Agrawal, the learned Senior Counsel for the petitioner alongwith Sri Suyash Agrawal and Sri Shambhu Chopra for the department.;