1996 (7) TMI 55

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....ing the heirs and legal representatives have not been successful. Even learned counsel for the original assessee has not been able to do anything in the situation. We are expected to answer the questions and, for the purpose of answering them on the basis of the provisions of the Code of Civil Procedure (Order 22, rule 10A, Civil Procedure Code), as the appearance of learned counsel for the assessee continues, we have heard him on the merits. In the light of the decision of the Allahabad High Court in Kishori Lal Makundi Lal, In re [1941] 9 ITR 193, and other decisions in connection therewith, we proceed to answer the questions as the mere death of an assessee would not preclude this court from answering the question, even if the reference ....

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....hat the intangible additions would have shown on the statement of the closing stock and inadequate drawings of the partners and then the situation would have been available for being given to the assessee, in regard to which there is no material. The Income-tax Officer added this amount of Rs. 50,000 and since no explanation was offered, the proceedings for levy of penalty were also simultaneously initiated. This was by an order dated March 16, 1972. The appeal before the Appellate Assistant Commissioner was unsuccessful and the matter came up before the Income-tax Appellate Tribunal on the first occasion. It was contended before the Tribunal that when the statutory appeal was pending, the firm had applied to the Central Board of Dire....

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....m in the assessment years prior to and including the assessment year 1959-60. In paragraph 14 of the order of the Tribunal, the Tribunal observes that the amount related to unaccounted profits made by the firm of which he was a partner. The Tribunal in considering this aspect has drawn valuable assistance from the fact that the evidence afforded by the voluntary disclosure made by the firm shows that the firm did have at least one crore rupees of unaccounted profits, a situation staring in the face of the record. The Tribunal reached the factual conclusion regarding the probabilities of the situation by observing "the probabilities, therefore, are that the said sum of Rs. 50,000 had come out of such unaccounted profits". The Tribunal fou....