LAWS(MPH)-1981-12-17

MUNNALAL MOTILAL Vs. COMMISSIONER OF INCOME TAX

Decided On December 17, 1981
MUNNALAL MOTILAL Appellant
V/S
COMMISSIONER OF INCOME TAX Respondents

JUDGEMENT

(1.) THE question of law referred in this reference under s. 256 (2) of the IT Act, 1961, is as follows:

(2.) THE disclosures under the Finance Act No. 2 of 1965 were made by Smt. Kapoori Devi, the wife of the Karta, and Virendra Kumar. his major son. THE question is whether in the assessment proceedings against the HUF the IT authorities can investigate into the genuineness of the deposits which were subject-matter of disclosure. THE point in our opinion, is entirely covered against the assessee by the decision of the Supreme Court in Jamnaprasad Kanhaiyalal vs. CIT (1981) 23 CTR (SC) 146 : (1981) 130 ITR 244 (SC) and by the decision of this Court in Addl. CIT vs. Samrathmal Santoshchand (1980) 124 ITR 297 (MP). THE facts in the instant case are quite similar to the facts in Samrathmal Santoshchand's case. Following these decisions, our answer to the question is that IT authorities have jurisdiction to investigate into the genuineness of the deposits. THEre will be no order as to costs of this reference.