9911796707
TMI Blog1998 (7) TMI 128X X X X Extracts X X X X X X X X Extracts X X X X ..... esult of this will be squarely applicable for the appeals for asst. yrs. 1982-83 and 1983-84. 3. Brief facts of the case are that assessment of the firm of Kewalram Narsingdas (assessee) was completed under s. 143(3) vide order dt. 3rd Jan., 1982 by the AO, Ward-B, Barmer. This assessment was completed in the status of registered firm. A search was conducted at the residential and business premises of Kewal Ram on 2nd March, 1987, and it was found that Kewal Ram and his family members formed a partnership firm with a number of outside partners who had either been the employees of the firm earlier or are persons of no financial means. They were inducted as bogus partners to divert the profits. It was also found that the profit which origina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... firm. It was stated that on the basis of affidavit filed during the asst. yr. 1978-79 the registration was granted by holding that the firm is a genuine one. It was also submitted that statement recorded in March, 1987 was under pressure and on the basis of such statement the genuine firm cannot be converted into in genuine firm. It was further submitted that there was a change in constitution in 1979-80 and 1980-81 and again the firm was granted registration by holding that the firm was a genuine one. It was also stated that in all these years the registration was granted under s. 184(7). It was also submitted that summons under s. 131 was not legally served as this was without jurisdiction because the statement was recorded by the ITO Bal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... then on the basis of some information or statement recorded of the partner after a gap of one year or two years the assessment cannot be cancelled in this fashion. He placed reliance on Narnauli Jewel Corpn. vs. CIT (1987) 163 ITR 293 (Raj), Subhash Medical Stores vs. CIT (1984) 40 CTR (Raj) 54 : (1984) 147 ITR 486 (Raj), Krishna Agrico. Electrical Industries vs. CIT (1986) 55 CTR (Pat) 124 : (1986) 159 ITR 35 (Pat), Laxmi Chand Hirjibhai vs. CIT (1981) 21 CTR (Guj) 181 : (1981) 128 ITR 747 (Guj) and WTO vs. Shyam Sunder Goenka (1988) 26 ITD 63 (Cal). 5. On the other hand, the learned Departmental Representative stated that a letter was given on 19th May, 1997 by the then Senior Departmental Representative wherein it was stated that "If i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... partmental Representative is fair in stating that the appeal may be decided on the basis of material available on record as no assessment record could be received in spite of repeated requests made in past to the concerned AO. This was not in dispute that the registration was granted for asst. yr. 1981-82 and the assessment was also completed under s. 143(3). At the time of granting registration, Shri Kundomal was an existing partner. It is also clear from other assessment records that he was also a partner in earlier assessment years i.e., asst. yrs. 1978-79 to 1980-81. Statement of Kundomal was recorded in connection with some gifts made by him and a general question was put before him that whether he was a partner in past in any of the f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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