COMMISSIONER OF INCOME TAX Vs. BABULAL JAIN

JUDGEMENT

(1.) BY this reference under Section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), the Income-tax Appellate Tribunal, Nagpur Bench, has referred the following question of law to this court for its opinion :

(2.) THE material facts giving rise to this reference, briefly, are as follows : While framing the assessment of the assessee for the assessment years 1977-78 and 1978-79, the Income-tax Officer made certain additions to the income returned by the assessee. On appeal, the Appellate Assistant Commissioner allowed the assessee to adduce evidence relating to the additions made by the Income-tax Officer. After appreciating the entire material on record, the Appellate Assistant Commissioner deleted the additions in question made by the Income-tax Officer. Aggrieved by the order passed by the Appellate Assistant Commissioner, the Revenue preferred an appeal before the Tribunal. THE Tribunal held that the action of the Appellate Assistant Commissioner in allowing the assessee to adduce further evidence was justified under the provisions of Rule 46A(1)(d) of the Income-tax Rules, 1962. In this view of the matter, the Tribunal dismissed the appeal. Aggrieved by the order passed by the Tribunal, the Revenue sought a reference and it is at the instance of the Revenue that the aforesaid question of law has been referred to this court for its opinion.