COMMISSIONER OF INCOME TAX Vs. SATISH CHANDRA

JUDGEMENT

(1.) On the direction of this court the Income-tax Appellate Tribunal, Delhi Bench 'B', has submitted the following question of law for the opinion of this court :

(2.) Facts in brief, giving rise to this reference, are that the assessee, an individual, derived income from sale of paper, stationery, copies, etc. In the course of assessment proceedings, the ITO found that four payments in cash beyond Rs. 2,500 were made. As the assessee failed to explain the circumstances in which these payments were not made either by crossed cheque or bank draft, the ITO disallowed it Under Section 40A(3) and added these in his income. In the appeal before AAC the assessee filed certificates from the suppliers stating that they were not willing to accept cheque. The appellate authority, however, did not place any reliance on these certificates as they were not filed before the ITO. Further, the certificates were found to be vague and of a routine nature. This finding was recorded by the appellate authority although he. did not disbelieve that one of the suppliers, M/s. Agrawal and Company, did not have any bank account. In further appeal, the Tribunahwent into the details and after examining each certificate was of opinion that the case of the assessee fell within the four corners of Rule 6DD and the circular issued by the Board.

(3.) It has been argued on behalf of the Commissioner that the AAC could not have accepted the additional evidence. We, however, do not think that we are called upon to decide this controversy as the argument raised by the learned counsel was neither raised before the AAC or before the Tribunal nor any question was called on it.