UDHAVDAS KEWALRAM Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS reference by the Tribunal is made at the instance of the Supreme Court under their judgment dt. 14th April, 1967, in Civil Appeal No. 668 of 1966 [(1967) 66 ITR 462 (SC)], referring the following questions for our opinion:

(2.) WE are concerned in this case with asst. year 1952 53, the previous year ending on 23rd Aug., 1951. During the relevant assessment year there was in the books of account of the assessee an account in the name of his wife, Ishwaribai, showing a cash credit of Rs. 55,293 representing the sale proceeds of ornaments received by her as presents at the time of her marriage with the assessee. Before the ITO the said sale proceeds were supported by necessary vouchers showing the sale of the ornaments. The assessee has also filed before the ITO a list showing the articles received by Ishwaribai at the time of her marriage with the assessee from various relatives and friends, and also a copy of the English translation of the entries in the name of Ishwaribai in the books of account of the assessee, as the books were maintained in Sindhi language. The ITO, however, did not ascertain the truth or otherwise of the list produced by the assessee by calling either the assessee or his wife or any of the persons mentioned therein. However, the ITO rejected the assessee's claim and added the said amount to the income of the assessee by observing :

(3.) AGAINST the said order of the AAC, an appeal was preferred by the Department to the Tribunal. However, the Tribunal, without even referring to the evidence produced by the assessee in support of his contention, but merely acting on probabilities, set aside the order of the AAC and confirmed the order of the ITO holding that the said amount was the benami income of the assessee. In doing so, the Tribunal observed as under: