COMMISSIONER OF INCOME TAX Vs. NIRMAL H PHOPALIA

JUDGEMENT

(1.) ADMITTED . The respondents waive service. By consent, the appeal is taken up for final hearing.

(2.) THIS appeal is preferred under S. 260A of the IT Act, 1961, from and against the order of the Tribunal dt. 4th May, 2000, vide Appeal No. 234/Mumbai of 1997 for the block period 1987 88 up to 1997 98. Eight questions have been sought to be raised by the Department, who are the appellants in this appeal.

(3.) SIMILARLY , the Department has sought to raise two questions bearing question No. 2 and question No. 3. Here, the facts are as follows. The assessee used to play cards. Occasionally, he used to gamble. The AO has come to the conclusion that his income from gambling was Rs. 1.85 lakhs. This was on the basis of loose sheets (Annexure A/2) found during the search. According to Annexure A/2, the assessee has appended certain figures and remarks from which the AO inferred receipt of Rs. 1,85,000 for the asst. yr. 1996 97 which he added back to the income for the year 1996 97. However, according to the Tribunal, the amount had accrued during Diwali. According to the Tribunal, the assessee was a Gujarati. That, generally during Diwali, the members of that community play cards. That, high stakes were involved in such games. The Tribunal also considered the notings on Annexure A/2 which states "paid to Nirmal on 18th Sept.,1995" and which also states "difference to be collected next year." The Tribunal further observed that in view of Annexure A/2, the addition be limited to Rs. 1,06,500 instead of Rs. 1,65,000 as done by the AO. We do not find any substantial question of law on this point. Therefore, question No. 2 and question No. 3, as proposed by the Department, stand rejected. Questions Nos. 4, 5 and 6 :