COMMISSIONER OF INCOME TAX Vs. D P KARAI

JUDGEMENT

(1.) The Commissioner of Income Tax, Jamnagar, has filed this Tax Appeal No. 199 of 2003 under Section 260-A of the Income Tax Act, 1961 (hereinafter referred to as "the Act") requesting this Court to frame and decide following substantial questions of law arising out of the order of the Income Tax Appellate Tribunal, Rajkot Bench, Rajkot in ITA No.5/RJT/2001 for the block period from 1.4.1987 to 29.1.1998 decided on 3rd January 2003;

(2.) During the course of hearing of this Tax Appeal, one more substantial question of law is proposed to be raised by Mr. Pranav G. Desai, learned counsel appearing for the department, which is as under;

(3.) The brief facts, giving rise to the present Tax Appeal are as follows. The respondent-assessee herein was intercepted on 29.1.1998 at Santa Cruz Airport and was searched under Section 132 of the Act. He was found to be in possession of cash worth Rs. 20 lakhs which was seized. His statement on oath was recorded under Section 132(4) of the Act on the same date, i.e., 29.1.1998 wherein he has stated that the cash seized was out of his undisclosed income and the same was being offerred for taxation in the current year being financial year 1997-1998. The said declaration of income of Rs. 20 lakhs was stated to have been made voluntarily and without any threat, coercion or undue influence.