N K AGARWAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) In this reference tinder Section 256(2) of the I.T. Act, 1961, at the instance of N. K. Agarwal, the assessee, the Tribunal has drawn up a statement of case and has referred the following questions of law for the opinion of this court :

(2.) Whether the order of the Tribunal in confirming the conclusion of the ITO that the assessee had purchased the winning tickets from the real holders is based on no material evidence and is perverse ?" 2. The material facts found or admitted in these proceedings are as follows :

(3.) In the assessment year 1972-73, for which the relevant previous year ended on the 31st March, 1972, the assessee claimed that Rs. 64,913 being winnings on horse racing from seven jackpots and four trebles were his receipt of a casual and non-recurring nature and exempt from tax. Most of the payments were claimed to have been received by the assessee in cheques drawn by the Royal Calcutta Turf Club and a certificate to that effect was produced from the said turf club. In his income-tax assessment for the previous year, being the assessment year 1971-72, the assessee had claimed similar exemption in respect of Rs. 16,996, being his race winnings foom horse racing which had been rejected by the ITO but had been allowed by the AAC. Following his decision in the said previous year the ITO rejected the assessee's claim in the instant year and added the said amount as income from undisclosed sources. The assessee appealed to the AAC who found that the facts in the instant year were identical to those in the previous year and following his order in the previous year deleted the said addition.