Commissioner of Income Tax vs Smt. Pushpa Bhati

These appeals and cross-objection before the Tribunal arise out of assessment of the respondent-assessee for asst. yrs. 1994-95 and 1995-96. In both these cases, the principal dispute which was before the Tribunal was whether the assessee should be assessed in respect of income in question on substantive basis or as protective measure. The Revenue''s contention in respect of the income was that it is a substantive income of other members of the family; the income in question was unearthed as a result of search and seizure conducted at the premises of the assessee and members of the family.

The Tribunal in the case of Shri Om Prakash Bhati, husband of the appellant, has held that income was to be assessed in the hands of Smt. Puspha Bhati on substantive basis and not in the hands of Shri Om Prakash Bhati. The order of the Tribunal in the matter of Om Prakash Bhati dt. 13th May, 2003, is subject-matter of pending appeal before this Court raising the question about person in whose hands, substantively the aforesaid income ought to be assessed.

However, the admitted position which has emerged thereafter is that the assessee-respondent had made an application declaring the aforesaid income in dispute under Kar Vivad Samadhan Scheme for the first time in 1994-95 and 1995-96 and certificate to that effect has been issued by the CIT, Jodhpur. Because of this circumstance before the Tribunal, the Department has also accepted the position that the income in question declared under KVSS be assessed on substantive basis in the hands of the assessee.

It is apparent from the following observations made by the Tribunal:

"Besides, the Department has also accepted the position that income declared in her return was to be assessed in her hands on substantive basis. This is clear from the income disclosed under the KVSS in her hands for asst. yrs. 1994-95 and 1995-96."

Thus, the order of the Tribunal is not merely dependent on the order passed in the appeal of Om Prakash Bhati in its order dt. 13th May, 2003, but the order is founded independently that follows from the surrender of the income by the assessee and certificate to that effect having been issued by the CIT. That is why, this position was accepted by the Revenue before the Tribunal.

In view thereof, merely because the Tribunal has also referred to its earlier decision in Om Prakash Bhati for sustaining the assessment in the hands of assessee on substantive basis by itself would not give rise to any substantial question of law because of the pending appeal in respect of Om Prakash Bhati. The assessee has been assessed on substantive basis on the basis of declaration under KVSS and, therefore, pending dispute comes to an end.

We are, therefore, of the opinion that no substantial question of law arises for consideration in these appeals.

The appeals are accordingly, dismissed.