- (1.) Mr. Sharvan Kumar Gupta on behalf of Mr. Ankur Rastogi, for the appellant. The instant appeal has been filed by the appellant herein for the assessment year 1994-95 assailing the order passed by the learned Income-tax Appellate Tribunal, Jaipur Bench, Jaipur (for short, "the ITAT"), which, vide order dated July 30, 2010, dismissed the appeal of the appellant.
(2.) The appellant is a private limited company and submitted its return of income for the assessment year 1994-95 on March 22, 1996, declaring an income of Rs. 10,59,837. The entire income was shown by way of agricultural income and thus an exemption was claimed. Initially, the return was processed under section 143(1)(a) on March 25, 1997. Thereafter, it was revealed that huge amount in cash was deposited in the bank account of the appellant and it was further claimed that investment of more than Rs. 17 lakhs was made in shares. Accordingly, the case was reopened by issuance of notice under section 148 of the Income-tax Act.
(3.) In pursuance to the notice under section 148, the Assessing Officer proceeded ahead to make enquiry with regard to the claim of agricultural income as well as investment in shares, etc. It is stated by the Joint Commissioner of Income-tax, Special Range-I, Jaipur, who happens to be the Assessing Officer, that despite of ample opportunities having been given by sending several notices, no compliance was made by the appellant to attend the proceedings. The Assessing Officer, inter alia, required the appellant to provide; (1) information with regard to advance against share application money to the tune of Rs. 86,100; (2) explain the nature and source of the cash deposited in the bank to the tune of Rs. 12,88,227; (3) to explain the source of agricultural income earned to the tune of Rs. 12,31,746 the assessee appellant having claimed that he did not have land of its own but had taken agricultural land on lease from various persons. In this connection, the Assessing Officer required the appellant to prove by documentary evidence and to produce the concerned owner; (4) to provide the bills/ details pertaining to purchase of seeds, sowing of land, electricity and other connected details of agricultural operations; (5) details of trading of shares and other details.;