Law: Income Tax Act, 1961

Section: 215,216,256(2)

(a) Income-tax-----Reference---Advance tax---Amount surrendered by assessee under Amnesty Scheme---Rejection of offer and continuation of proceedings on the basis of return submitted under Amnesty Scheme whether justified--¬Sections 215 & 216 whether applicable to assessment completed on remand-¬Questions of law---Indian Income Tax Act, 1961, Ss. 215, 216 & 256(2). (b) Income-tax--- ----Reference---Disallowance of commission after considering evidence--¬Question of fact---No question 6f law arose---Indian Income Tax Act, 1961, S.256(2). Pursuant to the decision of the Government of India to allow import of cement, several State Corporations were permitted to import cement under open general licence and to sell the same to actual users. In pursuance of that scheme, the Punjab State Civil Supplies Corporation and the Delhi State Civil Supply Corporation were allowed to import cement from Romania and Korea, respectively, by six shipments in all. These two Corporations then appointed the assessee as handling agent and passed over the entire burden of handling the said imported cement to the assessee. The assessee established temporary offices in Madras to handle the import of cement. In August, 1983, a search was conducted in such temporary offices and also at the residential premises of the assessees managing director in New Delhi. On the basis of the search, the Assessing Officer came to the conclusion that "on money", which was not accounted for in the regular books of account, was charged on the sale of cement. Additions were, therefore, made to the income of the assessee. The Commissioner of Income-tax (Appeals) set aside the assessment directing the Assessing Officer to reframe the assessment after making fresh enquiries regarding the various additions, particularly on account of "on money" and disallowance of commission. A fresh assessment was made determining the assessees income at Rs.2,86,94,530. The various additions were repeated. In the fresh assessment proceedings, the assessee had filed a revised return showing an additional income of Rs.30,00,000. According to the assessee this return was filed under the Amnesty Scheme but this amount of…

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