D MOHANLAL PAREKH Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE assessee has applied under s. 256(2) of the I.T. Act, 1961, to direct the Tribunal to state a case and refer the following questions for the opinion of this court."(1) Whether, on the facts and in the circumstances of the appellant's case, the Income-tax Appellate Tribunal was right in law in holding that the amount of Rs. 15, 975 representing the value of nine gold bars recovered from the assessee's residence was properly includible in the assessee's total income for the assessment year 1969-70 ? and.(2) Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in holding that the provision of s. 69A was satisfied in regard to the aforesaid addition of Rs. 15, 975 ?" *THEre is no dispute in this case as to the factual position.

(2.) THE assessee is a banker and a commission agent for the purchase and sale of gold and gold jewels. On the night of July 31, 1968, the customs officers made a raid in the assessee's residence and found nine gold bars kept concealed in a tin box inside the water drain in the bath room. THE assessee, when questioned about the said gold bars, explained before the customs authorities that he had received 15 gold bars from one Mr. Mohan for sale on commission and that out of the said 15 gold bars he had sold six gold bars for a sum of Rs. 11, 000 and the rest nine gold bars still remained to be sold. During the search a sum of Rs. 27, 000 odd was also seized from the assessee's premises. Accepting the assessee's stand that out of the said sum of Rs. 27, 000, Rs.11, 000 odd represented the sale value of six gold bars sold by him, the customs authorities confiscated the nine gold bars as also the sum of Rs.11, 000 odd representing the sale value of six gold bars said to have been sold by the assessee on behalf of the third party, Mr. MohanAfter coming to know of the said seizure of gold bars and the cash by the customs department the ITO initiated proceedings under s. 69A of the Act and included, the value of nine gold bars as also the cash found at the time of the search by the customs authorities.