COMMISSIONER OF INCOME TAX Vs. ASHOK PAL DAGA

JUDGEMENT

(1.) THE Commissioner of Income-tax, Bhopal, has filed this application under Section 256(2) of the Income-tax Act, 1961 (for short, "the Act"), seeking a direction to the Income-tax Appellate Tribunal, Indore, to state the case and refer the proposed question of law, as extracted below, to this court arising out of its order dated July 8, 1994, passed in I. T. A. Nos. 288 and 781/(Ind) of 1992 :

(2.) BRIEFLY stated, the facts of the case are that the non-applicant-assessee furnished a return on March 4, 1990. The assessment was made under Section 143(3) of the Act on March 17, 1992. The business and residential premises of the assessee were searched in January, 1989. The premises of certain other assessees connected with this assessee were also searched. The first appeal was decided on September 1, 1992. In the course of search, extensive material was recovered from the residence of the assessee. This material manifested that the creditors were not genuine and were only name-lenders. The Assessing Officer rejected the explanation of the assessee and passed the order. The additions were, however, set aside in the first appeal. The Tribunal found it fit to delete the additions. Aggrieved by the order of the Tribunal, the applicant filed an application under Section 256(1) of the Act. This application, registered as R. A. No. 98/(Ind) of 1994 was rejected on December 12, 1994. Thereafter, the applicant has filed this application under Section 256(2) of the Act.

(3.) AS held in CIT v. AShoka Marketing Ltd. [1976] 103 ITR 543 (SC) and CIT v. Kotrika Venkataswamy and Sons [1971] 79 ITR 499 (SC), where the Tribunal reaches a conclusion in regard to the aforesaid aspects, which is one of fact, it does not give rise to any question of law as such.