SHIV NARAYAN SHIVHARE COMMISSIONER OF INCOME-TAX Vs. COMMISSIONER OF INCOME-TAX SHIV NARAYAN SHIVHARE

JUDGEMENT

(1.) THESE two cases arise out of the order dated October 31, 1986, passed in Reference Application No. 499/ (Del) of 1986 by the Income-tax Appellate Tribunal, "b" Branch, New Delhi, whereby the two cross appeals, namely, I. T. A. No. 966/ (Del) of 1984 and I. T. A. No. 2677/ (Del) of 1984 and cross-objections No. 146 of 1984, relating to the assessment year 1975-76 were dismissed. These two petitions have been presented under Section 256 (2) of the Income-tax Act, 1961, in respect of the assessment year 1975-76. Both these cases are being disposed of by this common order and Miscellaneous Civil Case No. 135 of 1987 shall be the leading case.

(2.) IN Miscellaneous Civil Case No. 135 of 1987, the petitioner/assessee, Shiv Narain Shivhare, prays that the Income-tax Appellate Tribunal did not mention the points raised and refused to refer the questions of law which were necessary to be decided in this case. The following two questions of law are framed by the petitioner in this case :

(3.) THE petitioner urged that he had already disclosed the independent derived income from partnership of five firms to Rs. 75,000 as income from undisclosed sources. Out of his share, he had paid 40 per cent. of the income to one Phool Chand, who was appointed to supervise the work of the firms. This point was not considered by the learned Tribunal in respect of the fact that an agreement to that effect was executed on March 29, 1975. The learned Tribunal and the Income-tax Officer did not allow the deduction of 40 per cent. of the share of the income of the petitioner. The petitioner had moved the Income-tax Appellate Tribunal, Delhi, to frame questions of law for referring the same to the High Court, which has been refused ; hence, this petition has been moved.