K. SAKTHIVEL Vs. ASSISTANT COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The assessee is on appeal as against the order of the Income Tax Appellate Tribunal relating to assessment year for the period 1.4.1989 to 1990-91. The above Tax Case (Appeal) was admitted on the following substantial questions of law:-

(2.) The assessee also raised additional questions of law which are as follows:-

(3.) It is seen from the facts narrated that the search was conducted in residential and business premises of one V.S.Kathirvel on 22.6.1999 and concluded on 19.8.1999. During the course of the search, various incriminating documents were seized from the residential and business premises of V.S.Kathirvel. It was seen that he had indulged in unaccounted real estate transaction. Some of the documents pertained to the transaction with the assessee who had purchased 3 acres of land from V.S.Kathirvel for a consideration of Rs.9,75,000/-. Enquiry proceedings were initiated against the assessee. The assessee participated in the enquiry proceedings and had given sworn statement on 5.8.1999 under Section 131 of the Income Tax Act. In answering the enquiry, the assessee is stated to have made the following statements, which, as recorded in the order of assessment and appeal, is the translation of the statement recorded in Tamil, which reads as under:-