COMMISSIONER OF INCOME TAX Vs. SAMSUL HUDA

JUDGEMENT

(1.) THIS is a reference at the instance of the Revenue under S. 256(1) of the Act referring the following question of law for this Court's opinion :

(2.) THE assessee is assessed in the status of an individual under S. 143(3) of the IT Act, 1961, for the asst. yrs. 1980 -81 and 1981 -82. The ITO in the assessment orders noted that the assessee had not shown income from the business of his wife, which was included in the previous year and which was sustained on appeal as well. In the absence of details, he estimated the income at Rs.

(3.) ,000 and added the same. On appeal, the AAC, accepting the assessee's contention that he had taken over the business and whatever profit or loss therefrom was to be assessed in the hands of the assessee (the assessee agreeing to it before the AAC) and since there was no profit at all, rather loss on account of interest, nothing could be added to his income, allowed the appeal and the addition of Rs. 3,000 was ordered to be deleted. The Revenue came in appeal before the Tribunal. The Tribunal, while agreeing with the AAC's conclusion and observation, held as follows :