COMMISSIONER OF INCOME TAX Vs. C F THOMAS

JUDGEMENT

(1.) I.T.R. No. 134 of 1999 at the instance of the Revenue is a reference under Section 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. No. 859/Coch. of 1992 which was an appeal filed by the respondent, namely, C.F. Johnson, the assessee. I.T.A. No. 123/00 is an appeal filed by the Commissioner of Income-tax, Cochin, under Section 260A of the Act challenging annexure D order of the Income-tax Appellate Tribunal passed in I.T.A. No. 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 February 10, 1989.

(2.) We heard senior advocate Sri P.K. Raveendranatha Menon, appearing for the Revenue, and learned Counsel appearing for the two assessees, respectively.

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