GIRDHARILAL AGRAWAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) HEARD Shri B.L. Nema, counsel for the applicant on admission.

(2.) THE applicant, an individual assessee under the IT Act, 1961 has filed this application for reference under s. 256(2) of the Act.

(3.) THE learned counsel for the applicant contended that a finding recorded ignoring legal evidence might give rise to a question of law. THE learned counsel invited our attention to the discussion by the assessing authority in regard to agricultural income of the assessee and his brothers. His contention is that the assessee and his brothers had substantial agricultural income which was used in the investment of silver. Paragraph A(3) discusses the claim of the assessee regarding the agricultural income of himself and his brothers Ambika Prasad and Shyam Biharilal. It is claimed that the two brothers have an income of Rs. 5,000 per year and the third brother has an income of Rs. 6,000 per year. THE assessing authority has noticed that the assessee has not kept any reliable record of such income and, therefore, the claim was unacceptable. But on an over all consideration of the evidence, he partially accepted the claim of the assessee to the extent of Rs. 8,000 as income from agriculture. Paragraph B(2) deals with the claim of investment of agricultural income in silver bullion. THE assessing authority referred to the earlier discussion and allowance of Rs. 8,000 was given. In this view, he held that the claim of the assessee that 3.600 kgs. of silver bullion was purchased from the agricultural income was accepted and the balance of 8.000 kgs. of silver bullion was treated as unexplained investment.