PIPUSHKUMAR O DESAI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) AT the instance of the assessee, the following three questions have been referred to this court for its opinion, by the Income -tax Appellate Tribunal, Ahmedabad Bench 'B', under the provisions of Section 256(1) of the Income -tax Act, 1961 (hereinafter referred to as 'the Act').

(2.) THE facts giving rise to the present reference application, in a nutshell, are as under : A search was conducted at the residence of the assessee on November 22, 1983. During the course of the search, cash and jewellery were found, out of which part of the jewellery had been seized. The Assessing Officer came to the conclusion that the assessee was found to be the owner of jewellery worth Rs. 66,432 during the assessment year in question, which was not recorded in the books of account and as the assessee could not offer any explanation about the nature and source of acquisition of the said jewellery, the value of the said jewellery was deemed to be the income of the assessee for the said assessment year as per the provisions of Section 69A of the Act.

(3.) BEING aggrieved by the order of the Commissioner of Income -tax (Appeals), the assessee had approached the Tribunal by filing an appeal. In the appeal, the Tribunal was pleased to reduce the said amount from Rs. 66,432 to Rs. 12,728. Thus, the said amount was deemed to be the income of the assessee under the provisions of Section 69A of the Act.