Law: Income-tax Act (XI of 1922)

Section: 34(2),34(2-B)

Income-tax Act (XI of 1922), S. 34(2), (2-B) [as amended by Finance Act (V of 1964)]-Assessment for year 1955-56 made on 29-6-1960-Held, not hit by bar of limitation originally existing in subsection (2).   Barnala Commission Shop, Chak Jhumra v. Income-tax Officer, B- Ward, Lyallpur P L D 1963 Lah. 311 ref.   Nagina Silk Mill, Lyallpur v. Income-tax Officer, A-Ward, Lyallpur P L D 1963 S C 322 held not applicable. Date of hearing: 8th November 1965.  JUDGMENT   MUHAMMAD FAZLE GHANI, J.--The assessee, an individual, carries on business in silver, gold ornaments and bullion at Multan. He is an assessee since 1945-46 and being an illiterate person, has maintained no accounts whatsoever. The Assessing Officer estimated his income pertaining to the assessment years 1953-54 to 1959-60 by taking into consideration his wealth statement as on 31st of March 1953, and on 31st of March 1959, and the quantity of gold seized by the Custom Authorities as a result of raids conducted at his premises in July, 1956 and October 1958. The figures were spread in a specified manner as income of the relevant seven years at a total of Rs. 1,83,000. The assessee also filed a revised wealth statement before the Appellant Assistant Commissioner but the authorities including the Tribunal preferred to rely on the first two statements and ignored the third one which was filed with the intention to correct some of the entries of the first two. While dealing with the third wealth statement, the Tribunal observed as follows: ---   "These are mere bald statements unsupported by any evidence and it is a fact worthy of notice that the appellant has admittedly not maintained any accounts. As regards the second wealth statement the certificate of the Habib Bank produced before us merely states the position of the out stan dings on 16th June 1958, whereas the material date is 31st March 1959, the wealth position disclosed in this statement being as on that date. The certificate does not, however, say whether the loan had been paid during the period from 17th June 1958 to 31st March 1959, or was still outstanding on the latter date."   The Tribunal, however,…