9911796707
TMI Blog2011 (1) TMI 583X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income Tax Act, 1961 (for short, "the Act") against the order of the Income Tax Appellate Tribunal, Chandigarh in I.T.A. No.959/Chandi/96 for the assessment year 1991-92 raising following questions of law:- "i) Whether in the facts and circumstances of the present case the action of the authorities below in initiating the reassessment proceedings merely on the basis of communication dated 12.12.1992 without any reasonable ground having rational connection, is legally sustainable in the eyes of law? ii) Whether in the facts and circumstances of the present case, the action of the authorities below in holding the consignment sales to be the sales on account of trading without investigating the same appropriately and acting on its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s Bharat Trading Co. and M/s Assam Timber Store, the AO had received the information from the Assistant Director of Income-tax (Investigation) Hissar on 12.12.92. The reasons for reopening of assessments had been recorded on 15.2.1993 i.e. after the receipt of information from the ADI, Hisar. The report is based on enquiry. A perusal of the sum and substance of the report, which has been reproduced elsewhere in this order, clearly indicates a sound basis for formation of the belief that income of the assessees had escaped assessments. We are, therefore, of the considered view that the proceedings for reassessments in the case of M/s Bharat Trading Co. for the assessment year 90-91 and 91-92 and in the case of M/s Assam Timber Store for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of Rs.8500/- for the assessment year 90-91 and Rs.19,250 for the assessment year 91-92. The assessment of Rs.57,800 and Rs.47,620 on account of unexplained investment is also justified. The orders of the CIT(A) are accordingly set aside and those of the AO restored." 3. We have heard learned counsel for the parties. 4. It is not disputed that in the case of the appellants/assessees the earlier assessment was under Section 143(1)(a) of the Act, in which case the CIT(A) was not justified in invoking Section 151(1) of the Act, which is applicable only if initially assessment was regular assessment under Section 143 (3) or Section 147 of the Act. The view taken by the Tribunal, thus, does not require any interference. The questions o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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