CIT Vs. ASHWANI TREHAN

JUDGEMENT

(1.) The Income Tax Appellate Tribunal, Amritsar, under Section 256(1) of the Income Tax Act, 1961 (for short, "the Act"), has referred following questions of law for opinion of this Court, arising out of its orders dated 3-12-1997 and 10-6-1998 in IT(SD) A. No. 4(ASR)/1997 in respect of block assessment period from 1-4-1985 to 13.12.1995:

(2.) The Assessee is an individual and his sources of income are salary, interest and dividend. A search was conducted at his residence on 13.12.1995 and 14.12.1995 on which two Wills executed by his father and mother were found. As per the will of the father, he bequeathed a sum of Rs. 5 lacs in cash in favour of mother of the Assessee, the Assessee himself, his wife and his two children. The source of money found as per the Will, as claimed by the Assessee, was doubted on the ground that his father had met with an accident and was unable to run the business. The assessing officer held that the amount was unexplained income of the Assessee. On appeal, plea of the Assessee was upheld on the ground that execution of Will had not been challenged and in absence of further investigation, there was no justification to reject the explanation furnished by the Assessee that inspite of accident, his father continued to do business.

(3.) The Assessee also took the plea that he had filed return for the assessment year 1995-96 on 25-3-1996, which was before the due date and the amount disclosed in the said return could not be treated as concealed income. The assessing officer did not accept this plea on the ground that disclosure in return filed after search was not relevant. However, on appeal, the Tribunal upheld this plea of the Assessee on the ground that return was before due date under Section 139(4) of the Act.