TaxTMI 
TaxTMI 
1978 (7) TMI 14
X X X X Extracts X X X X
X X X X Extracts X X X X
....essed to tax in respect of the assessment years 1958-59 and 1959-60, on 20th March, 1960. He was employed as secretary in the H. R. Sugar Factory Private Ltd., Bareilly. After his assessment was made the proceedings for the assessment of H. R. Sugar Factory Private Ltd. were taken up by the ITO. During the course of the assessment, the ITO found that three amounts, i.e., Rs. 20,000, Rs. 20,000 and....
X X X X Extracts X X X X
X X X X Extracts X X X X
....re-opened the assessment proceedings under s. 147(a) on the assumption that as the amounts deposited in the account of the mills represented his income from undisclosed sources, the same were liable to tax. As Hargovind Lal died in November, 1967. Capt. Sant Kumar, the legal representative of the deceased, Hargovind Lal, claimed that the deposits entered in the books of the mills were not that of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he provisions of section 147(a) of the Income-tax Act were rightly applied by the Income-tax Officer ? " Two contentions were raised by the learned counsel for the assessee. He urged that the ITO who assessed Hargovind Lal on 20th March, 1960, had knowledge about these three deposits which stood in the name of Hargovind Lal in the mill's account and as the ITO did not treat them to be the depos....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ified. As mentioned above, it would be seen that the deceased, Hargovind Lal, was examined as a witness in the assessment case of the factory on 19th April, 1962. He stated before the ITO that the deposits which stood in the accounts of the company in his name did not belong to him. His statement was accepted by the ITO. He held that these deposits did not belong to Hargovind Lal and, in fact, rep....