1992 (9) TMI 140

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....hop outside the shop of the Halwai. A survey is stated to have been conducted by the IT Department as per the order of the ITO. No details about the date of survey have been given nor is there any material to show that the assessee was confronted with any material that might have been found prejudical to the interests of the assessee. However, even as per that survey as mentioned in the assessment order, at 8.30 A.M. cash of Rs. 62 was found in the shop which was being run by Shri Babu Lal. It is also stated that Shri Babu Lal had stated that he had been running the Halwai shop since 1978 and its net income was around Rs. 1,000 per month. The ITO, however, did not accept the returned income of the assessee showing income from interest at Rs....

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....nce it was not correct for the AO to suddenly change the status of the assessee to HUF and then club the income of all the three sons and of the deceased himself. He also drew our attention to the assessments of Shri Ram Gopal under the WT Act which were completed in 1989 adn they were also in the status of individual. He also drew our attention to the statements of Late Ram Gopal himself before the ITO in which he had confirmed that he had stopped the work of Halwai on account of his old age and that his eldest son was carrying on that business employing his second son Mohan Lal as his employee. Shri Ranka pointed out that although the ITO had completed the assessment of Shri Babu Lal for this assessment year on a protective basis, yet the....