PRAKASH TIWARI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) BY this reference under Section 256(1) of the I.T. Act, 1961 (hereinafter referred to as " the Act") the Income-tax Appellate Tribunal, Indore Bench, Indore, has referred the following questions of law for the opinion of this court:

(2.) THE material facts giving rise to this reference briefly stated are as follows : While framing the assessment of the assessee for the assessment years 1972-73 to 1977-78, the ITO added Rs. 15,000 to the income of the assessee from undisclosed sources in the assessment year 1972-73. On appeal, the AAC confirmed the order of the ITO. On further appeal the Tribunal reduced the addition of income to Rs. 10,000.

(3.) WE have heard the learned counsel for the parties. The learned counsel for the assessee contended that as the assessee did not maintain any accounts, Section 69B of the Act was not applicable and, therefore, the Tribunal was not justified in adding Rs. 10,000 to the income of the assessee from undisclosed sources. In our opinion, on the facts and in the circumstances of the case, reference to Section 69B of the Act was not appropriate because the assessee did not maintain any accounts. However, the matter is squarely governed by Section 69 of the Act which provides that: