HIRA SINGH Vs. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) THE question referred to this court by the Tribunal reads as follows :

(2.) THE assessment year is 1971 72. The assessee is a forest contractor. A bill showing sale of Rs. 1,12,275 was given to the Income tax Department. When the said bill was put to one of the partners of the firm, he admitted the same to be a "katcha bill" and also admitted that it was made by an accountant, who was no more with them. It is also admitted that it is only a "pacca bill", which will be entered in the books of account and all the sales will be made to the financiers. The Income tax Officer on the basis of those facts made the total addition of Rs. 1,12,275 on account of the said bill.

(3.) WHEN the matter came before the Tribunal, the latter reversed the findings of the Commissioner of Income tax and restored the findings of the Income tax Officer. The Tribunal referred to the questions put to the partner, Hira Singh, by the Income tax Officer and the answers given by him, which read as follows :