9911796707
TMI Blog2007 (3) TMI 225X X X X Extracts X X X X X X X X Extracts X X X X ..... During the course of search proceedings, certain incriminating documents were found at these premises. An order was later passed under section 132(5) of the Act on July 13, 1990. Notice under section 148 was issued to the petitioner on April 30, 1991, in respect of the assessment year 1989-90 because the petitioner by that time had not filed the return under section 139(1) of the Act. Pursuant to the said notice, the petitioner filed his return of income for the assessment year 1989-90 on May 15, 1991, declaring total income of Rs. 18,289. The petitioner then filed a return of income under section 139(1) of the Act for the assessment year 1990-91 on March 31, 1992. The assessing authority first took up the assessment for the year 1990-91 an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the meantime the petitioner filed an application under section 245C of the Act on November 14, 1995, in regard to the assessment year 1989-90 for being settled before the Settlement Commission. The Settlement Commission after hearing both the assessee as well as the Revenue by order dated September 30, 1996, held that in view of the complexity of the investigation involved, the application for settlement about the assessment year 1989-90 does not deserve to be proceeded with because the disputed matters have already reached the Income-tax Appellate Tribunal (for short "the Tribunal") which is the final appellate authority on questions of fact and its findings will finally decide the issues regarding disputed additions and also the issue of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... while dealing with the two additions in the income of the petitioner based on the observation made by the Commissioner of Income-tax (Appeals) in his order dated October 15, 1993, observed as under: "8. We have carefully considered the rival submissions of the parties, perused the material available on record and the case law relied upon by the learned Authorised Representative. We find that the addition of Rs. 11,21,000 was made by the Assessing Officer as undisclosed investment made by the assessee in respect of purchase of front portion of the property, known as 24, Surya Bhawan, Ajmer Road, Jaipur. This addition was made by the Assessing Officer on the basis of seized paper page No. 10 of exhibit B-1, contending to be payments mentio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the fact that it was investment by the assessee in the assessment year 1989-90, is also directed to be reversed. Since the addition cannot be sustained legally in the assessment year 1990-91 in appeal before us, we do not consider it necessary to decide the issue on the merits of the case. However, the Assessing Officer shall be at liberty to take any action as he may consider appropriate under any of the enabling provisions of the Act. Accordingly, grounds Nos. 1, 2 and 3 raised by the assessee in his appeal and the Revenue's ground on the addition of Rs. 11,21,000 in ground No. 1 stand disposed of." Shri R.B. Mathur, learned counsel for the Revenue however although supported the judgment of the Settlement Commission but could not deny ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... versed, is no longer available as impediment in law, if there was one, to proceed with the matter and decide it in accordance with law on the basis of that finding alone. In the facts and circumstances of the case, therefore I find that the conclusions arrived at by the Settlement Commission no longer remain valid in view of the subsequent developments. The matter therefore requires a fresh consideration at the end of the Settlement Commission itself rather than this court further adjudicating upon the controversy. In view of the conclusions arrived at by the Tribunal that the findings recorded by the Commissioner of Income-tax (Appeals) were unjust and uncalled for and therefore they were liable to be reversed and were accordingly reversed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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