COMMISSIONER OF INCOME TAX Vs. K DADAKHAN

JUDGEMENT

(1.) At the instance of the Revenue, the Income Tax Appellate Tribunal set out a case and referred the following question of law for the opinion of this Court.

(2.) The assessee, an individual entered into an agreement of sale on 21.2.1983 with one Arumugam for purchase of land in an extent of 0.75 acres with an uncompleted structure of Cinema Theatre for a total consideration of Rs.2,07,000/-. The said agreement was seized by the Revenue in the course of search conducted. The sale deed was registered on 2.3.1983 for a consideration of Rs.40,000/-. The assessee claimed that the expenditure laid out was only Rs.47,000/-,which includes the sale consideration of Rs.40,000 and other expenses towards registration and stamp duty in a sum of Rs.7000/-. The assessing officer made an addition of Rs.1,67,000 representing the difference in the value between the sale agreement dated 21.2.1983 and the sale deed dated 2.3.1983. On appeal, the Commissioner of Income Tax (Appeal) deleted the addition made by the assessing officer.

(3.) The Tribunal on further appeal at the instance of the Revenue refixed the addition to Rs.36,000 on the ground that the assessee agreed before Commissioner of Income Tax (Appeals) of the valuation arrived at by the Inspector in a sum of Rs.76,000. The Revenue being not satisfied with the finding of the Tribunal moved for reference and hence the above reference.