2009 (10) TMI 233

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e assessments involved are for the years 1988-89 to 1993-94. It is the admitted fact that the partnership firm of which the respondent-assessees were partners, did not maintain any books of account and, therefore, the original assessments the firm itself were completed on estimation basis. Following the said assessments of the firm, income was assessed in the hands of the partners. However, the Department later found that the firm had furnished balance- sheets for the period ended December 31, 1985, and March 31, 1993, before the bank which disclosed massive credit balances in the current and capital accounts of the partners. Based on this and other information, the assessments of the firm were reopened and reassessments were completed unde....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....to implead the other legal heirs also on record for disposing of the appeals because in the first place, we are not deciding the case on the merits. Further, in the connected appeals the very same legal heirs are raising the same contentions appli cable in the case of the late assessee as well. Therefore, we proceed to dispose of those appeals also after hearing the counsel appearing for one of the legal heirs of the deceased assessee. 3. When the appeals were taken up for hearing, Sri P. Balakrishnan, counsel appearing for the assessee, referred to Circular No. 5 of 2008, dated May 15, 2008, issued by the Central Board of Direct Taxes and the decision of the Bombay High Court in CIT v. Grasim Industries Ltd. [2009] 319 ITR 154 and conte....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....23 ITR 6 (Ker)), held that reassessments completed under section 147 are within time and the findings of the first appellate authority as well as of the Tribunal to the contrary are not tenable. The facts are exactly similar inasmuch as the assessments of the respondent-assessees are completed based on materials available from the balance-sheet furnished by the firm which showed substantial credit balance in the current account and capital accounts of the partners in the course of time. In fact, the Assessing Officer has dealt with unexplained investments and expenditure made by the assessees during the years from out of records and assessments of the firm. It is proved yond doubt that the assessees have not disclosed all material facts req....