MOHAMMAD AHSAN WANI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Amritsar Bench (hereinafter referred to as "the Tribunal"), has referred the following three questions to this court under Section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"):

(2.) THE assessment year under reference is the year 1966-67, the relevant accounting year being the year ending 31st March, 1966. THE original assessment for this year was completed on a total income of Rs. 68,539. THE original assessment was reopened and a notice under Section 148 of the Act was issued and in response to the said notice the assessee filed a return of income declaring a loss of Rs. 59,519. During the previous assessment proceedings, the assessee was called upon to explain the source of a fixed deposit receipt of Rs. 75,000 which had been purchased by him from the National and Grindlay's Bank Ltd. on September 6, 1965, and also of Rs. 5,000 which was shown to have been paid by him to one of his wives, Shrimati Zaina Begum. THE assessee explained that he had taken loans from his other wife and minor sons as follows :

(3.) THE assessee preferred an appeal before the Appellate Assistant Commissioner of Income-tax against the reassessment made by the Income-tax Officer. THE Appellate Assistant Commissioner set aside the assessment made by the Income-tax Officer and directed the Income-tax Officer to make a fresh assessment in accordance with law. THE Appellate Assistant Commissioner passed the said order on the following grounds :