1990 (8) TMI 48

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....lso conducted in the premises of his business concerns. At that time, it transpired that there were pay orders dated April 25, 1989, which were issued by one Shri Surrinder Kumar totalling Rs. 50,40,000. These pay orders were issued to Hindustan Copper Ltd. The Deputy Commissioner of Income-tax passed an order under the second proviso to section 132(1) effecting a deemed seizure of these pay orders. Intimation was also sent to the Manager, Punjab National Bank. Thereafter, orders under section 132(5) were passed by the department against R. K. Aggarwal and also Surrinder Kumar. At that time, R. K. Aggarwal stated that Surrinder Kumar was only a name-lender and in fact the said pay orders had been issued on his own behalf. Appeals were fi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....y the petitioners have been allowed. The case of the petitioners has already been set out above. We would have expected that any diligent officer, while concerned with large sums of money, would have made inquiries as to what had happened to the pay orders after the petitioners gave them to the sister concerns of R. K. Aggarwal. The Commissioners have accepted that R. K. Aggarwal received Rs. 49.03 lakhs and from that have concluded that the cash deposited in the name of Surrinder Kumar in April. 1989 amounting to Rs. 50.40 lakhs included the aforesaid amount. No inquiries were made and there was no mention in any, of the two orders as to how the pay orders, given by the petitioners not to R. K. Aggarwal but to four business concerns in whi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ated which can lead any one to even a prima facie conclusion that money which was paid in January was still available for being put to use in April, 1989 There is no investigation done by the Commissioners of Income-tax nor have they referred to this aspect. In the instant case, a regular assessment has taken place. An assessment order has been passed in the name of Surrinder Kumar and a copy of the assessment order has been placed on record by the Addl. Solicitor General before us. According to this order dated February 13, 1990, the aforesaid amount of Rs. 50.40 lakhs has been included in the hands of Surrinder Kumar. A regular assessment having been made, we see no reason as to why, even assuming that the Commissioner of Income-tax ha....