1979 (5) TMI 95

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....e. According to the assessee, the reopening was bad because all the information had been furnished at the original assessment stage. The ITO found that in the course of a search by the Enforcement Officials of the assessee's premises a sum of Rs. 1 lakh was found and in a statement recorded from him on 17th Nov., 1970 the assessee had admitted having received the sum from his father in Malaysia. The ITO found that the statement was vague and no evidence has been produced. The assessee was unable to furnish how the funds were remitted. He brought this to tax by invoking the provisions of s. 69A. 2. The assessee appealed to the AAC. The AAC found that the full facts have been given even at time of the original assessment. A penalty of Rs. ....

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.... the Deptl. Rep. was therefore, called upon to produce all the records including that of the AAC. 5. At the stage the Deptl. Rep. produced also the confidential file which was maintained by the ITO, but he stated that the AAC's file is not available. After going through the records he urged that the reopening may be sustained under s. 147 (b). For taking this proposition he relied on the decision in the case reported in 102 ITR 287. He filed additional grounds stating that the reopening may be taken as under s. 147 (b) and upheld. Reliance was placed on the decision in the case of ITO, A-Ward, Companies Dist. II & others vs. Eastern Coal Co. Ltd.(1) (In liquidation) and CIT vs. A. Raman & Co.(2) He further submitted that apart from the a....

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....the entry in the Malaysian books was also known to the ITO at time of the original assessment proceedings. We also notice that the information was collected by the ITO even before the assessee filed the return of income for this year. It is therefore clear that the assessee's averments before the ITO that he has furnished all the necessary information during assessment proceedings cannot be controverted. If so, s. 147(a) does not apply. It is open to the Deptl. Rep. to sustain this under s. 147(b). But we find that even here it cannot be sustained. The relevant portion of the letter dt. 29th Feb., 1972 reads as under: "Except the assertion of assessee's son and the assessee's claim that credit of Rs. one lakh in the Indian books on 17th ....