L M THAPAR Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The Tribunal has submitted the statement of the case and has referred the following question of law for our opinion :

(2.) The question relates to the assessment year 1960-61, the accounting period ending on March 31, 1960. Late Shri Karamchand Thapar was the assessee. It appears that Sri M. M. Thapar, assessee's son, was married on May 2, 1959, and the assessee's daughter was married on January 18, 1960. The ITO felt that in the income-tax return the expenses of marriages were not properly explained. He asked for certain details and the same was furnished, on a consideration whereof the ITO held that the marriage expenses should be assessed at Rs. 4 lakhs. He gave credit for a sum of Rs. 1,51,000 admitted by the assessee to have been spent on the two marriages and added back a sum of Rs. 2,50,000 as income from undisclosed sources.

(3.) The assessee went up in appeal. The AAC accepted the case of the assessee and deleted the addition. The matter went up to the Tribunal. The Tribunal agreed with the ITO in part. It held that in all circumstances it will be reasonable to consider the total marriage expenses at about Rs. 2.5 lakhs. Since the expenses of Rs. 1,51,000 were admitted, the Tribunal estimated the addition at a lump sum figure of Rs. 1 lakh. The question mentioned at the beginning of this judgment has been referred at the instance of the assessee.