COMMISSIONER OF INCOME TAX Vs. SURAJLAL MANNALAL

JUDGEMENT

(1.) THIS is an application under Section 256(2) of the Income-tax Act, 1961 read with Section 66(2) of the Income-tax Act, 1922 for a direction requiring the Income-tax Appellate Tribunal to state the case and refer the questions of law arising out of the order of the Tribunal dated 22-1-1965. The questions of which reference is sought are:--

(2.) THE non-applicant assessee carries on sarafi business at Tal, district Ratlam. During the course of the assessment proceedings for the year 1960-61, the Income-tax Officer noticed a credit entry of Rs. 12,409/- in favour of one Hansraj Gokulji in the account books of the assessee. THE entry related to the sale proceeds of 104 tolas of gold alleged to have been given to the assessee by the said Hansraj Gokulji for sale. THE assessee was asked to lead evidence to prove the genuineness of the transaction. THE non-applicant assessee examined Hansraj Gokulji, who denied the transaction totally. THE Income-tax Officer, therefore, added the said sum of Rupees 12,409/- as income of the assessee from undisclosed sources. THE order of the Income-tax Officer was affirmed by the Appellate Assistant Commissioner on appeal and, thereafter, by the Income-tax Appellate Tribunal on a further appeal.

(3.) IT has been repeatedly held that the question whether there has been a concealment of income is a question of fact on which no reference is ordinarily permissible: (Kanga and Palkhivala's 'The Law and Practice of Income-tax', Sixth Edition, p. 1039).