JUDGMENT

I. MAHANTY, J. — The petitioner M/s. Maddi Sreeramulu & Sons (HUF) filed the present application under Section 256(2) of the Income tax Act, 1960 (in short ‘the Act’) against the order dated 5.3.1990 passed by the Income Tax Appellate Tribunal, Cuttack Bench, Cuttack in reference Application No. 151/CTK/1989 relating to the assessment year 1976-77.

2. This Court vide order dated 7.9.1992 has been pleased to admit this application on the following question of law :

“Whether on the facts and in the circumstances of the case, the initiation of the proceeding under Section 147(a) of the Income Tax Act was valid ?”

3. Subsequent thereto, the Income Tax Appellate Tribunal in compliance of the directions contained in the aforesaid order of the Court sent the statement of the case for consideration of this Court.

4. Learned counsel for the petitioner Mr. G.N.Padhi sub¬mits that this case arises out of the search conducted by a Police Party at the premises of the assessee-petitioner on 17.9.1975 and on the basis of which some gold ornaments, silver and cash were seized from the petitioner. It is further stated that the Superintendent of Police, Koraput vide his letter dated 25.9.19