9911796707
|
Home
Issues:
The appeal under section 260A of the Income Tax Act, 1961, confirming the assessment under section 158BG of the Income Tax Act, involving undisclosed income from unexplained cash credits and interest thereon. The assessment treated cash credits as bogus under section 68 of the Income Tax Act, based on statements of alleged creditors and other factors. Issue 1: Jurisdiction of Assessing Authority The substantial question of law raised was whether the assessment under sections 158BG, 158BB, and 158BA was within the jurisdiction of the assessing authority. The Tribunal confirmed the assessment, rejecting objections on jurisdiction and merits. Issue 2: Denial of Opportunity Another question raised was regarding the denial of a reasonable opportunity to the appellant to explain or cross-examine the creditors after they were examined by the Assessing Officer in the presence of the managing partner. The appellant contended that they should have been given an opportunity before approval was granted by the Commissioner under section 158BG. The court held that the principles of natural justice need not be imported into section 158BG, as it involves an administrative function of the Commissioner. While approval under section 158BG may serve as an additional safeguard for the assessee, it does not require face-to-face interaction between the Commissioner and the assessee. The nature of functions under section 158BG does not align with the application of natural justice principles, and the contention regarding the necessity of such principles for approval under this section was not deemed meritorious. The appeal was admitted by the court for further proceedings.
|
