(1.) THIS is a reference under s. 256(2) of the I.T. Act, 1961 (shortly called "the Act").
(2.) THE following question has been referred by the Income-tax Appellate Tribunal, Bangalore Bench, for the opinion of this court :
(3.) THE ITO required the assessee to explain the source of investment of Rs. 10,060 for purchasing those watches. THE assessee tried in vain to show that S. P. Bhandary was the owner of the watches. He could not prove the same. He could not produce any evidence to lend credence to his contention. On the contrary he had admitted before the customs authorities at the time of seizure of the watches that he was the owner of it. So the ITO added the sum of Rs. 10,060 to the income of the assessee as income from other sources.