- (1.) Heard learned counsel for the parties. This tax appeal under Section 260A of the Income Tax Act, 1961 (for short Act of 1961) has been preferred against the order passed by the Assessing Officer dated 28.12.2006 and the order passed by the Commissioner of Income-Tax (Appeal) dated 4.3.2008 and the order passed by the Income Tax Appellate Tribunal, Circuit Bench, Ranchi, dated 29.3.2010.
(2.) The A.O. passed assessment order under Sections 147/143(3) of the Act of 1961, In a case where the assesses Ajay Prakash Verma submitted original returns on 22.4.2004 for the assessment year 2003-04, showing his total income of Rs. 84,200/-. The assesses had shown his income from tuition, sale of cow milk, income of other sources including agricultural income amounting to Rs. 6,000/-. The case of the assessee was duly processed on 30.3.2005. However, a notice under Section 147 was issued on 23.11.2005 for the same assessment year which was duly served upon the assessee on 26.11.2005. The reasons for re-opening the case is based on the fact that the assessee had taken loans from 148 different persons amounting to Rs. 25.97 lakhs during the financial year 2002-03 (relevant to the assessment year 2003-04). All these loans were taken in cash and are below Rs. 20,000/-. On the basis of this fact, the A.O. had reasons to believe that because of this clandestine deal, the assessee had escaped assessment of income for the assessment year 2003-04.
(3.) In response to the notice under Section 142(1), the assessee filed a petition dated 12.9.2006 and requested the Department to accept original returns filed on 22.4.2004, as returns was filed under Section 148 of the Act of 1961. In view of the above, the case was fixed for hearing by issuing notice under Section 143(2) afresh. In course of scrutiny, the assessee was asked to file the details of the names and addresses of the persons from whom he had taken loan of Rs. 32 lakhs for having allegedly advanced loan to another person, Sri Ajay Kumar of Hazaribagh, later on.;