COMMISSIONER OF INCOME TAX Vs. KRISHNAN G

JUDGEMENT

(1.) IN this reference, the Appellate Tribunal has referred the following three questions :

(2.) IN respect of the first question, the Appellate Tribunal noted that the addition was made only on the basis of the statements of witnesses in a criminal case and even those statements were not given to the assessee for cross-examination, and those statements were not the basis of the conviction either. The Appellate Tribunal thus found that there was no proof of payment in respect of which the assessee was called upon to explain the source of funds. Accordingly, the Appellate Tribunal found that this addition was not sustainable.