ITO Vs. SOM DUTT PROPRIETOR

JUDGEMENT

(1.) This order shall dispose of ITA No. 65 of 1999 filed by the revenue and ITR No. 173 of 1998 filed by the assessee-respondent. In both the cases, the following common question of law has been raised:

(2.) The brief facts of the case may first be noticed which are being referred from ITR No. 173 of 1998. The assessing officer made addition of Rs. 98,460 under Section 40A(3) of the Income Tax Act. The assessee filed an appeal before the Appellate Assistant Commissioner and the addition made by the assessing officer were deleted. The operative part of the order dated 29-4-1991 is as under:

(3.) The revenue challenged the order of the Appellate Assistant Commissioner before the Tribunal which held that the instant case did not fall within the exceptions as contained in rule 6DD(J) and Circular No. dated 31-3-1977 issued in this regard. Accordingly, the addition made by the Appellate Assistant Commissioner was set aside. The assessee sought a reference under Section 256(1) which has been accepted by the Tribunal and the question has been referred for the opinion of this Court.