COMMISSIONER OF INCOME TAX Vs. HASTINGS PROPERTIES

JUDGEMENT

(1.) ON an application under Section 256(2) of the Income-tax Act, 1961, this court has directed the Tribunal to refer the following questions set out in para. 1 at page 2 of the application :

(2.) WHETHER the findings of the Tribunal leading to the conclusion that the order of the Commissioner of Income-tax dated June 10,1986, was not valid in law are unreasonable and perverse ?"

(3.) THE case of the assessee before the Tribunal was that there was no material before the Commissioner of Income-tax to estimate the cost of land at Rs. 22,84,168, which was taken on lease. THE assessment order was passed and assessment proceedings were monitored by the Commissioner of Income-tax (Investigation), all the relevant materials were collected and on record for making the assessments, the on money theory of the Commissioner is baseless. For sale proceeds of the building material the assessee has explained that though earlier the amount of Rs. 51,000 was offered by A.R. Sharma but that could not be accepted as there was stay of the court on demolition work. THErefore, that firm withdrew from the offer and the material ultimately was sold for Rs. 28,000. THErefore, there is no question of taking sale proceeds at Rs. 51,000 against Rs. 28,000.