COMMISSIONER OF INCOME TAX Vs. JOHNSONS

JUDGEMENT

(1.) ITR 134/99 at the instance of the Revenue is a reference under S.256(2) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act' for short). In the said income tax reference, the Commissioner of Income Tax, Cochin assails the order of the Income Tax Appellate Tribunal in I.T.A. 859/Coch/1992 which was an appeal filed by the respondent namely C.F. Johnson, the assessee. I.T.A. 123/00 is an appeal filed by the Commissioner of Income Tax, Cochin, under S.260 A of the Act challenging Annexure 'D' order of the Income Tax Appellate Tribunal passed in I.T.A. 187/Coch/1994 in the matter of the assessment of the respondent, C.F. Raju. Both the proceedings relate to the assessment year 1989-90. The Tribunal had, inter alia, accepted the contention of the assessees that there was no evidence of the assessees having obtained a sum of Rs. 10,00,000 (Rupees ten lakhs) by way of pakidi from their tenant one Sundaresa Pai to whom the ground floor of a commercial building situated by the side of M.G. Road, Ernakulam was let out as per an unregistered lease deed executed on 10-2-1989.

(2.) We heard Sr. Advocate Sri P. K. Raveendranatha Menon appearing for the revenue and the learned counsel appearing for the two assessees respectively.

(3.) Supporting the order of the Tribunal, the learned counsel appearing for the assessees made the following submissions before us: