Law:

Section:

Section 256, read with sections 68 and 147(a), of the I ncome-tax Act, 1961 - Reference - Question of fact - F or first time before commissioner (appeals) assessee raised question of validity of reopening of its assessment by ITO on ground that no reasons had been recorded by ITO for reopening of assessment - Commissioner (appeals) held that proceedings had been validly taken and reasons recorded by the assessee were referred to by him - However reasons recorded by ITO were not available when tribunal heard appeal - Whether a question of law that tribunal's finding that reasons for reopening of assessment existed as referred to by commissioner and as such reopening of assessment was valid was a finding of fact - Held, yes - On basis of duplicate account books ITO held that gross peak credit occurring in every concealed account had to be clubbed to determine the extent of concealed income - Commissioner (appeals) held that no amount could be added as unexplained cash credit - H owever, analysing entries in duplicate books he made additions on account of concealed income from ghee business - Whether it could be said that commissioner (appeals) had created any source of income - H eld, on facts, no - Whether it could be said that a question of law arose from tribunal's order confirming commissioner (appeals)'s order - H eld, no Facts There was a raid on the assessee's business place in September 1967 but nothing was discovered. However, some 'uchanti' account books were handed over by some munims of the assessee to the Central Bureau of Investigation (CBI) before the raid and they came into the possession of the investigation wing of the Income-tax Department. At some stage, the ITO reopened the assessment of the assessee for the year 1962-63 under section 147(a). The reasons recorded by the ITO for reopening the assessment were not available when the Tribunal heard the appeal. The reasons were referred to in the order of the Commissioner (Appeals) who stated that they had been referred to the uchanti books. These reasons were apparently recorded on 3-3-1970. The assessee's case was that no reasons were recorded but the ITO had acted only on the directions of the…

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