TaxTMI 
TaxTMI 
2004 (7) TMI 59
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....declaration to this effect by declaration dated October 18, 1986. On October 18, 1986, she has also given the affidavit to this effect. The Income-tax Officer of Sikkim has given the certificate that Smt. Asha Devi Singhi is an assessee in the income-tax and sales tax. The assessee has challenged the assessment order of the Assessing Officer. The Commissioner of Income-tax (Appeals), vide order dated March 5, 1991, set aside the assessment order and remitted the matter back to the Assessing Officer to make necessary enquiry giving opportunity to the assessee to confirm on the material collected against the assessee and also issue commission to examine Smt. Asha Devi Singhi in Sikkim. A fresh assessment was passed in compliance with the direction of the Commissioner of Income-tax (Appeals) and again the income was assessed at the same amount. Again the assessee has preferred the appeal before the Commissioner of Income-tax (Appeals). The Commissioner of Income-tax (Appeals) was of the view that the direction of the Commissioner of Income-tax (Appeals) in order dated March 5, 1991, has not been properly complied with. Neither proper enquiry has been made nor that lady has been ....
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.... by the appellant. The donor was living at a distance of more than 500 km., and hence, it was impracticable for the appellant to produce her for the purpose of examination and this was also not practicable for the purpose of issuing any summons under section 131. This legal hurdle could have been overcome by issue of commission which otherwise appears to have been not done. Similarly, if any evidence was to be made use of on the basis of the enquiries got conducted through different banks at Calcutta or through the DDI Investigation as referred to in the impugned assessment order, propriety demands that the person affected is to be confronted beforehand so that one may not feel aggrieved of being unaware of certain evidence being utilised against it. This is what the principles of natural justice also postulate but unfortunately this was also overlooked and in view of the same, the use of the results of enquiry from these sources without confronting the appellant was not in good taste and also not in tune with the principles of natural justice. Furthermore, it may be that one of the persons buying the draft at Calcutta has signed as N. K. Jain but this aspect should have been prefe....
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....ift-deed, and affidavit was filed and there was a certificate from the Income-tax Officer of the State of Sikkim wherein he has categorically affirmed of Smt. Asha Devi carrying on the business under the name and style of Narpat Singh, Gangtok, and also being an income-tax payer in the land of Sikkim State. It was also certified that she had made the gifts through the bank draft payable at Jaipur and it was out of her capital. The genuineness of the gift was also stated to have been verified by the Income-tax Officer of the State of Sikkim, and this certificate was dated October 24, 1986, which was filed along with the return in October, 1987. Along with the said return, the copy of the affidavit was also filed and a declaration of gift from the donor was also filed. In spite of this, no attempt whatsoever was made at the relevant point of time to cause the different enquiries from the donor with a view to find out the factual position. The concerned authority has also not brought any evidence on record so as to show that the certificate given by the Income-tax Officer, State of Sikkim as referred to earlier was a make-believe statement. In the absence of the same, there was hardly....
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....o denied having moved such an application as also about the similarity in the signatures, it also requested for verification of the same with the signatures of the income-tax returns, etc., and also for taking the handwriting expert's opinion, but, in spite of all this, no such attempt was made by obtaining the handwriting expert's opinion and in the absence of the same, there was no justification in treating the said initials as those of the appellant. The decision of the Sikkim High Court referred to earlier also makes a specific reference of the returns of the donor having been filed and assessed to tax. In view of all this, it cannot be said that the donor was not assessed to tax or was not doing any business in the State of Sikkim at the relevant point of time. It may be that the legal heir of the donor was not co-operating but merely on this basis, it cannot be said that the factum of gift was of dubious nature with a view to treat it as unexplained for the purpose of addition. There is no material evidence whatsoever to show that the money was deposited by the appellant or by a relative in the bank at Calcutta and thereafter got deposited in the account of Shri Ramesh Singhi....