2014 (5) TMI 374

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....08. He filed his returns and the Assessing Officer scrutinized the returns in terms of Section 143(3) of the Income Tax Act. During scrutiny of the returns, the Assessing Officer found that the petitioner had, in his initial return, not disclosed the existence of a Bank Account No.30044789261 maintained with the State Bank of India, Bazar Branch, Agartala. At the end of the financial year a sum of Rs.15,365/- stood in the credit of the assessee in the said bank account and this amount was added to the income of the assessee as undisclosed income. Penalty proceeding was initiated separately. 03. According to the assessee, he did not want to contest this matter and, therefore, deposited the amount assessed by the Assessing Officer. 04. ....

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....onsequence would have been to have quashed this notice but in the present case certain subsequent developments have taken place which clearly indicates that the intention of the Commissioner of Income Tax was not to set aside the order but to express his prima facie view that the order was wrong. The assessee in response to this communication appeared before the Commissioner of Income Tax who gave the assessee a number of opportunities of being heard. Written submissions were filed by the assessee and finally the Commissioner of Income Tax passed a detailed reasoned order on 12th May, 2010. 08. Assuming that the notice was bad, the issue that arises is whether the order under Section 263 of the IT Act should be set aside at this stage be....

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....ill necessarily have to take the character of an undisclosed bank account despite the fact that in the earlier AY 2006-07 it has been disclosed. Non disclosure is concealment and the non disclosure of the bank account had also undermined the correctness of the accounts and also the correctness of the balance sheet of the assessee. In this view of the matter, there is no reason why all the credits that had gone into the bank account cannot partake the character of undisclosed income. The assessee had submitted in his written submission that the bank balance of the said account has been voluntarily offered for taxation but has however remained silent on the issue of credits into the bank account which totals to Rs.1.06 crores. As no proper ex....