AI Drafter 
TaxTMI 
TaxTMI 
2004 (4) TMI 44
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.... The petitioner is an Hindu undivided family which owns a residential house at Etawah and receives rental income. It is alleged in para. 2 of the petition that the karta of the Hindu undivided family, Mr. J. P. Bajpai, is occupying the said premises for his individual use (office purpose) for which he pays Rs. 500 per month. It is alleged that the petitioner does not have any income from any other source. It is alleged in para. 3 of the petition that one M/s. Atul Traders which is a partnership concern in Etawah, and managed by Sri Om Prasad Purwar, fraudulently and without the consent of the petitioner started an account in the books of his firm styled as J. P. Bajpai, Hindu undivided family, Etawah. It is alleged in para. 4 of the pe....
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....Atul Traders was treated as bogus and the entire amount along with interest was added in the hands of the firm, M/s. Atul Traders, Etawah. Hence it is alleged that respondent No. 2 had knowledge that the alleged deposit of the petitioner has been shown fraudulently by M/s. Atul Traders. True copy of the assessment order for the assessment year 1979-80 is annexure VIII to the writ petition. The name of M/s. Atul Traders was changed to M/s. Atul Industrial Corporation, Etawah, since the assessment year 1980-81 having the same composition, assets and liabilities. Again in the year 1981-82 in the matter of M/s. Atul Industrial Corporation, respondent No. 2 treated the alleged deposit of the petitioner in the books of the firm as bogus and th....
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....e petitioner was shown in the books of M/s. Atul Traders was well within the knowledge of the assessing authority, and the said deposit was added in the hands of M/s. Atul Traders. As such this fact was well in the knowledge of the assessing authority, and only after the lapse of more than six years in the year 1987 notice under section 148 was issued to the petitioner. It is alleged in para. 18 that assessments of both the petitioner and M/s. Atul Traders for the assessment years 1981-82 to 1985-86 had been completed and the deposit in the name of the petitioner in the books of M/s. Atul Traders was accepted as bogus. As such the entire primary facts were well in the knowledge of respondent No. 2 while completing the assessment of the p....
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....er are the source of the deposit. Against the order of the Commissioner of Income-tax (Appeals), the Department has filed an appeal before the Income-tax Appellate Tribunal, Allahabad, which is pending. It is alleged that the notices have rightly been issued to the petitioner. From the facts of the case it appears that the deposit entries standing in the name of the petitioner-Hindu undivided family in the books of account of Ms. Atul Traders/Atul Industrial Corporation had been considered in detail by the Assessing Officer in the assessment proceedings and were treated to be false and bogus, and the liability claimed in respect thereof by the said firm was disallowed, and the same was added in the hands of the said firm right up to t....
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....6] 103 ITR 437; CIT v. E Bhanji Lavji [1971] 79 ITR 582 (SC); Parashuram Pottery Works Co. Ltd. v. ITO [1977] 106 ITR 1 (SC) and CIT v. Burlop Dealers Ltd. [1971] 79 ITR 609 (SC). In Foramer v. CIT [2001] 247 ITR 436 (All), it was held that where there was no failure on the part of the assessee to make a return disclosing full and material particulars for assessment, notice cannot be issued under section 148 on mere change of opinion. Against that decision an appeal was filed in the Supreme Court vide CIT v. Foramer France [2003] 264 ITR 566, and the decision of this court was upheld by the Supreme Court. The said decision of this court has been followed by the Full Bench of the Delhi High Court in CIT v. Kelvinator of India Ltd. [2002] ....