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TMI Blog1980 (8) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the assessment was completed ex parte under s. 23(4) of the old Act, on total income of Rs. 3,84,213 in the status of "resident but not ordinarily resident ". The assessee filed an application under s. 27 of the old Act which was accepted on May 18, 1957, and the proceedings were commenced de novo from the return stage. In the course of the reassessment proceedings, the ITO required the assessee to explain and prove the nature and source of various deposits. The assessee explained that deposits in banks, jubilee bonds and in the firm, M/s. Hindustan Rayon and Woollen Textile Mills in the name of the assessee in the relevant accounting year when the assessee was out of India, were made by the father, S. Narain Singh, who had gifted these ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pt for the following items: Rs. (i) Deposits in the name of the assessee with M/s. Hindustan Rayon & Woollen Textile Mills Ltd. on 1-9-1945. &n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sp; -------- Thus, out of the total addition of Rs. 3,58,314 made by the ITO towards the total income of the assessee as income from undisclosed sources, only a sum of Rs. 1,10,860 was sustained by the AAC. In second appeal, the Tribunal negatived the plea of the assessee that the provisions of s. 34(1)(a) of the old Act were not applicable. The Tribunal was of the opinion that the assessee did not disclose at the time of original assessment that he had made considerable investments in the banks and had purchased other assets. On merits, the Tribunal upheld the addition of Rs. 47,000 ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f M/s. B. H. Singh & Co. in the Punjab National Bank, Amritsar, as income of the assessee liable to tax under the Indian Income-tax Act, 1922 ? (iv) Whether, by reason of the omission to summon and examine the evidence offered by the assessee by his application dated August 3, 1960, the finding of the Tribunal with regard to the nature and Source Of Rs. 47,000 and Rs. 35,860 is not legally vitiated ? " The assessee has thus approached this court with the prayer that the Tribunal be directed to refer the above-mentioned questions of law to this court for its opinion. It may be observed that it is not disputed that when the assessee filed the original return, he filed the same in the capacity of a " non-resident ". When the matter was reop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the prayer of the assessee for summoning of the evidence and thus the assessee had been prejudiced. Paragraph 6 of the order of the Tribunal may conveniently be reproduced: " 6. After hearing the learned representatives of the parties and going through the records, the Tribunal came to the conclusion that the assessee did not disclose at the time of original assessment that he had made huge investments in banks and in the purchase of other assets. It was held by the Tribunal that the assessee had not disclosed all material facts 'fully and truly' (which were necessary for his assessment within the meaning of section 34(1)(a) of the Income-tax Act, 1961, and hence the Income-tax Officer was competent to reopen the assessment under the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the ITO. Therefore, on the same analogy, as already observed, in connection with the addition of a sum of Rs. 47,000, questions Nos. (iii) and (iv) which concern the addition of the above-mentioned amounts, are certainly questions of law and not questions of fact. As regards questions Nos. (i) and (ii), if the finding on the question of law, which has been referred to this court in Income-tax Reference No. of 1976 is answered in favour of the assessee, that he ought to have been assessed as " non-resident ", and questions Nos. (iii) and (iv), which have been ordered to be referred to this court are answered in favour of the assessee, then the questions Nos. (i) and (ii) would certainly be questions of law and not of fact, because, in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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