COMMISSIONER OF INCOME TAX Vs. HARBANSLAL GUPTA

JUDGEMENT

(1.) A common order is being passed in this application for reference at the instance of the Income-tax Department, represented through the Commissioner of Income-tax, under Section 256(2) of the Income-tax Act, 1961, and the connected Miscellaneous Civil Cases Nos. 220 of 1991 (Smt Bachan Devi Gupta), 221 of 1991 (Smt. Sudarshan Gupta), 192 to 199, all of 1991 and 280 of 1991 (Harbanslal Gupta, in all cases) as they arise out of the same proceedings of search and seizure conducted jointly by the Income-tax Department and the Central Excise Department. The applicant in all cases is the Commissioner of Income-tax, while the non-applicants in these cases are as indicated above in brackets.

(2.) IN all the cases, the applications for making reference of certain questions of law, proposed by the Department, have been refused by the INcome-tax Appellate Tribunal. The Department has, therefore, claimed reference of those questions by invoking the jurisdiction of this court under Section 256(2) of the said Act. Before considering the questions sought to be referred by the Department, it is necessary to state the factual background in which these cases arise for consideration by this court. The residential-cum-commercial premises of Shri Harbanslal Gupta were searched with the aid of the police on March 22, 1974, and the following assets were seized :

(3.) AGGRIEVED by the order of the Commissioner of Income-tax (Appeals), the Department went in appeal to the Income-tax Appellate Tribunal. The Income-tax Appellate Tribunal dismissed the appeal and upheld the deletion made by the Commissioner of Income-tax (Appeals). The Department then made an application for reference under Section 256(1) of the said Act and proposed 11 questions as follows for being referred to this court :