2000 (12) TMI 57

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..... he cash credit in the name of Afghan Fruit Company for the assessment year 1962-63 is valid in law?" The background facts as indicated in the statement of case are as follows: For the assessment years 1962-63 to 1966-67 assessments were completed originally under section 143(3) of the Income-tax Act, 1961 (for short the "Act"), on several dates. At that point of time, the assessee had filed a trial balance-sheet. The said trial balance-sheet showed a cash credit in the names of Lekh Raj Manak Chand and Afghan Fruit Company. The Income-tax Officer issued a query dated December 14, 1962, which contained names of these two parties. The assessee submitted a certificate from Afghan Fruit Company. Subsequent to the assessment, the Income-tax .....

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..... -tax Officer did not accept the plea and made some additions. The assessee preferred an appeal before the Appellate Assistant Commissioner (in short the "AAC"). The assessee's stand that it had disclosed all primary material facts at the time of original assessment found acceptance by the Appellate Assistant Commissioner. Therefore, the assessment was cancelled. The Department preferred an appeal before the Tribunal. The main challenge related to the legality of proceedings under section 147(a) of the Act. After considering the rival stands, the Tribunal, inter alia, came to the following conclusion: "What we find in the instant case is that the reasons to believe were specific and definite in their import. Therefore, keeping in view the .....

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..... 56(1) of the Act was turned down and as noted above pursuant to the directions given by this court, the question, as aforesaid, has been referred. We have heard learned counsel for the Revenue. There is no appearance on behalf of the assessee in spite of notice. Learned counsel for the Revenue submits that the conclusions of the Tribunal are essentially factual, giving rise to no question of law. We have considered the submissions in the background of conclusions arrived at by the Tribunal. We find substance in the plea of learned counsel for the Revenue that the conclusions are factual and do not give rise to any question of law. Our answer to the A question, therefore, is in the affirmative, in favour of the Revenue and against the asse .....

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