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Issues:
1. Validity of the assessment proceedings under section 148 of the Income-tax Act, 1961. 2. Admissibility of objection regarding jurisdiction raised by the assessee. 3. Delay in raising the objection by the assessee. 4. Merits of the addition made by the Income Tax Officer. Analysis: Issue 1: Validity of the assessment proceedings under section 148: The appeal pertains to an assessment made under section 143(3) read with section 148 of the Income-tax Act, 1961 for the assessment year 1961-62. The Income-tax Officer added a sum of Rs. 10,000 as income from other sources based on an unexplained investment made by the assessee. The assessee contended that the reassessment proceedings were without jurisdiction as a return had been filed earlier. The Appellate Tribunal allowed the assessee to raise the objection regarding the validity of the proceedings under section 148, emphasizing that this objection had been raised before the Income Tax Officer and the Appellate Assistant Commissioner. The matter was remitted to the Appellate Assistant Commissioner for further consideration. Issue 2: Admissibility of objection regarding jurisdiction: The Departmental Representative argued against allowing the objection regarding jurisdiction to be raised at that stage. However, the Tribunal held that since the objection was raised before the lower authorities and pertained to the legality of the assessment, it was permissible for the assessee to raise the objection. The Tribunal admitted the objection raised by the assessee and set aside the order of the Appellate Assistant Commissioner for further verification. Issue 3: Delay in raising the objection by the assessee: The Departmental Representative raised concerns about the delay in raising the objection regarding the validity of the assessment proceedings. The Tribunal noted that the delay was not due to the fault of the assessee, as the return had been filed in 1962, but the Department did not take any action until the notice under section 148 was issued in 1970. The Tribunal emphasized that the delay did not amount to deliberate or wanton delay on the part of the assessee and allowed the objection to be raised for verification. Issue 4: Merits of the addition made by the Income Tax Officer: The Tribunal did not delve into the merits of the addition made by the Income Tax Officer regarding the unexplained investment. It restricted the remand to the Appellate Assistant Commissioner only for consideration of the legal contention that the proceedings under section 148 had not been validly initiated due to the earlier filed return. The Tribunal upheld the addition as income from other sources based on the unsatisfactory nature of the evidence produced by the assessee. In conclusion, the Tribunal allowed the objection regarding the validity of the assessment proceedings under section 148 to be raised by the assessee and remitted the matter to the Appellate Assistant Commissioner for further consideration while upholding the addition made by the Income Tax Officer as income from other sources.
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