ADDITIONAL COMMISSIONER OF INCOME TAX Vs. CHETAN DASS

JUDGEMENT

(1.) This petition has been filed by the Additional Commissioner of Income Tax, Delhi-II, under Section 256(2) of the Income Tax Act, 1961 , praying that the Income Tax Appellate Tribunal be directed to submit the statement of case and refer the following questions of law which are said to have arisen out of its order, in I.T.A. No. 1898/69-70 and I.T.A. No. 865/69-70, relating to the assessment year 1963-64 :

(2.) The original assessed, Chetan Dass (now deceased), was an individual, who derived income from purchase and sale of hing, supari, navan and from house property. The assessment year involved is 1963-64, for which the previous year ended on March 31, 1963. The Income Tax Officer had made an addition of Rs. 1,00,000, by way of income from undisclosed sources. Rs. 70,000 were added by reference to the following deposits :

(3.) Another sum of Rs. 30,000 was added because during the course of a raid, the sales tax authorities had seized in 1965, an exercise book, which showed that the assessed had advanced loans of two sums, Rs. 10,000 on March 26, 1963, and Rs. 20,000 on March 30, 1963. On Explanationn being called the assessed denied having advanced these sums. He denied that the entries in the exercise book related to his transactions. The Income Tax Officer held that the exercise book belonged to the assesssee, and that he had failed to explain the sources from which the loans recorded in it had been made. It was on this ground that he added Rs. 30,000 also as income from undisclosed sources.