COMMISSIONER OF INCOME TAX Vs. SURINDER KUMAR

JUDGEMENT

(1.) THE questions referred for decision of this court under Section 256(2) of the Income -tax Act, 1961, are these :

(2.) WHILE completing the assessment, the Income -tax Officer made an addition of sum of Rs. 93,000 as income of the assessed from undisclosed sources. In the appeal filed by the assessed, the Appellate Assistant Commissioner upheld the said addition of Rs. 93,000. In further appeal filed by the assessed, the Tribunal reduced the income from undisclosed sources from Rs. 93,000 to Rs. 42,000.

(3.) IN respect of the source for the aforesaid sum of RE. 78,000, the case of the assessed was that he had borrowed approximately a sum of Rs. 75,000 from his wife, Smt. Kumud Kumar. The Income -tax Officer had examined Ms. Kumar on oath. The gist of her statement was that she gave a sum of Rs. 60,000 to her husband at different times. She had also advanced a loan of Rs. 15,000 to one Shri Chaman Lal Gupta at the instance of the assessed which money was also retained by the assessed on being returned by the said Mr. Gupta. She admitted that she was not having an account with any bank but explained that she had received a sum of about Rs. 10,000 as gift at the time of her marriage in the year 1952 and also further gifts and also that she was able to save out of the money given to her for running the household expenses. The assessed's Explanationn was disbelieved and as noticed above the amount was added as income from undisclosed sources.