COMMISSIONER OF INCOME TAX Vs. SOBHRAJMAL

JUDGEMENT

(1.) This reference application u/s 256(2) of the Income Tax Act (for short, 'IT Act') is directed against the order of the Income Tax Appellate Tribunal (for short, 'ITAT') dt.21/05/1993 by which the reference application of the revenue u/s 256(1) of the IT Act was dismissed by the ITAT and it relates to the assessment year 1986-87.

(2.) The revenue has proposed following questions for the opinion of the High Court arising out of RA No.17/JP/1993:-

(3.) The brief facts, which can be noticed on perusal of the order passed u/s 256(1) and the order passed by the ITAT while deciding the matter, are that a search and seizure operation was carried out in the case of partnership firm M/s Ghindmal Kauromal on 05/09/1985 and the respondent-assessee happened to be the partner of firm M/s Ghindmal Kauromal and was also subjected to search, the other partners were also subjected to search. During the course of search, certain books of accounts, documents and other incriminating documents/material were found and seized. During the course of assessment proceedings, the Assessing Officer (for short, 'AO') scrutinized the said documents and had made additions on account of some of the documents and it was claimed that these documents pertained to the assessee. The AO also made additions on account of some papers/documents in the case of firm M/s Ghindmal Kauromal on substantive basis but since the assessee being a partner and the documents having been found in the possession and custody and at the residence of the assessee, therefore, on protective basis, the addition was also made in the hands of the assessee as well.