COMMISSIONER OF INCOME TAX Vs. BARJATIYA CHILDREN TRUST

JUDGEMENT

(1.) THE applicant (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 Tribunal to state the case and to refer the proposed question of law after rejection of the application registered as R. A. No. 444/Ind. of 1991 for the assessment year 1985-86 on January 10, 1992, arising out of the order dated September 27, 1991, passed by the Tribunal in I.T.A. No. 602/Ind. of 1989 for our consideration and opinion :--

(2.) BRIEFLY stated, the facts of the case are that the assessment year is 1985-86. The Assessing Officer found certain cash credits. Finding the assessee failing to prove the genuineness of the credits, the Assessing Officer made an addition of Rs. 85,000 attributed to four creditors. On appeal, the Deputy Commissioner of Income-tax (Appeals) set aside the order of assessment on the limited issue of verification of cash credits amounting to Rs. 65,000 relating to three creditors and deleted the addition of Rs. 20,000 relating to the fourth creditor, Smt. Urmila Agrawal, on the ground that she was assessed to tax wherein the aforesaid amount was shown by her as having been loaned to the assessee. Aggrieved by the deletion of this amount, the Department filed the appeal before the Tribunal. The Tribunal dismissed the appeal. The Department then filed an application under Section 256(1) of the Act, which was rejected. Thereafter, the Department has filed this application under Section 256(2) of the Act.

(3.) WE find that the Tribunal dismissed the appeal of the Department and held as under ;