COMMISSIONER OF INCOME TAX Vs. SANTOSH KUMAR SHYAMSUNDER

JUDGEMENT

(1.) THIS is a reference under S. 256 (1) of the IT Act, 1961 (the Act') at the instance of the Revenue and the following question of law has been referred by the Tribunal for opinion of this Court:

(2.) THE brief facts giving rise to this reference are thus: The partners of the two firms were inter- related. The case creditors were also related to these partners. The ITO found the following cash credits in the books of the firm sureshchand Santosh Kumar: On scrutiny, the ITO further found that these credits had appeared in the books of Santosh Kumar Shyamsuder ('the firm') on 16th Nov., 1974. The cash creditors withdrew the above amounts form the second firm on 17th Nov., 1974, 18th Nov., 1974 and 19th Nov., 1974 and deposited the said amounts with the first firm on 20th Nov. 1974. As the cash creditors could not explain the nature and source of these amounts, they surrendered these amounts in their assessments wherein these were assessed on protective basis. This total amount of Rs. 53,000 was also added in the hands of the second firm on protective basis. The ITO did not accept the contention of the first firm that no addition should be made as this amount has been surrendered by and was assessed in the hands of the cash creditors. As such, the ITO added this amount in the hands of the first firm.

(3.) WE have heard the learned counsels for the parties and perused the record. We find that this is purely a question of fact; therefore, no question of law arises. Factually, it is the concurrent finding of the fact of both the authorities below and nothing survived in this matter. There is no question of law involved in this case. We are satisfied that the question of fact has correctly been decided, therefore, we answer the aforesaid question in favour of the assessee and against the Department /Revenue.