TaxTMI 
TaxTMI 
2015 (12) TMI 835
X X X X Extracts X X X X
X X X X Extracts X X X X
.... provisions of section 263 of the Income-tax Act and directing the Income-tax Officer to make enquiries regarding the sources of investment in purchase of silver bars amounting to Rs. 17 lacs and Rs. 16 lacs on 3-11-1979 and 27-11-1979?" 2 Heard Mr. M.R. Bhatt, learned Senior Advocate with Mrs. Mauna Bhatt, learned Senior Standing Counsel for the applicant. 3 The assessee is an individual. The assessment for the assessment year 1980-81 came to be completed under section 143A of the Income-tax Act, 1961 (hereinafter referred to as "the Act") by the Income-tax Officer. The Commissioner of Income-Tax invoked jurisdiction under section 263A of the Act on 4th March, 1985 and issued a show-cause notice to the assessee for the following reasons:....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he Commissioner directed the Income-tax Officer to make enquiries regarding the source of investment in purchase of silver bars amounting to Rs. 17,00,000 and Rs. 16,00,000 under section 69 of the Act and further observed that if the assessee does not satisfactorily explain the source of such bullion, the Income-tax Officer may treat the same as the income of the assessee. The assessee carried the matter in appeal before the Tribunal, which held thus: "6. In our opinion, the jurisdiction assumed by the Commissioner of Income-tax is not validly done. From the order of assessment it is of served that though the Inoce-tax officer has taken note of material on record in respect of action u/s. 132 of the Act taken on 24th December, 1981 no suc....
X X X X Extracts X X X X
X X X X Extracts X X X X
....uestion of the same being subject matter requiring consideration by the Income-tax officer. From the order passed for the assessment year 1981-82 in case of firm it appears that the I.T.O. came to know about custom seizure only in January, 1984 when the assessee showed inability to produce the accounts. Besides the assessee's stand is that he was acting as partner of the firm and the firm has also accepted this proposition corroborated by evidence. As against this there in no evidence to suggest that assessee was working on his own with regard to impugned silver. Therefore, there is no question of any error in the order passed by the Income-tax officer. Hence, in our opinion, the provisions of sec. 263 are not legally invoked. In this v....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sioner should be part of the records in the assessment proceedings of the assessee and the statements in the search operations regarding the son of the assessee could not be considered as forming part of assessment of the assessee and thus the action was invalid?" It was submitted that the controversy involved in the present case stands concluded by the decision of the Supreme Court in the case of C.I.T. v. Manjunathesware Packing Products (supra) as well as the above decision of this court rendered in ITR No.65 of 1988 with ITR No.66 of 1988. 6 Though served, there is no appearance on behalf of the respondent-assessee. 7. As noted hereinabove, the Tribunal has held that the Commissioner of Income-tax had no jurisdiction to invoke the p....
X X X X Extracts X X X X
X X X X Extracts X X X X
....record though subsequently to the making of the assessment cannot be taken into consideration. This court, in Commissioner of Income-tax v. Vallabhdas Vithaldas, (supra) has answered the reference thus: "In our view, the aforesaid observations of the Apex Court clearly give the widest meaning to the word "record". It is also pertinent to note that while Section 263(1) uses the word "record", the explanation goes further and states that the record includes all records relating to any proceeding under this Act. The use of the plural "records" and "relating to any proceeding under this Act" do not permit any limitation being placed on the power of the Commissioner that the power under Section 263(1) can be exercised only on the basis of the ....