COMMISSIONER OF WEALTH TAX Vs. MANNALAL SOORANA

JUDGEMENT

(1.) THIS application under Section 27(3) of the Wealth-tax Act, 1957, has been filed for giving directions to the Income-tax Appellate Tribunal to refer the following question of law, which were raised before us under Section 27(1) and the application for which was rejected by the Tribunal, vide its order dated November 16, 1984.

(2.) THE brief facts as stated in D. B. Wealth-tax Reference No. 225 of 1985 are that the assessee is an individual and filed the return for wealth-tax from 1967-68 to 1971-72. Additions of Rs. 65,919 and Rs. 35,969 were made on account of unexplained cash credits in the account of Motichand Dhandia for the assessment year 1967-68. THE additions were deleted in appeal. On subsequent enquiries it was revealed that the transactions with Motichand Dhandia was not genuine, and therefore, on the basis of the material in the possession of the Department, notices under Section 17 were issued for the years 1961-64 to 1965-66 and also for 1966-67 and 1967-68. A petition dated September 26, 1974, was submitted to the Commissioner of Income-tax for settlement for the assessment years 1963-64 to 1965-66. THE said petition was accepted on March 24, 1975, and a sum of Rs. 85,919 was agreed to be added on account of entries in the account of Motichand Dhandia. Twenty per cent. penalty was levied under Section 18(1)(c) for the assessment year 1967-68. THE returns for 1968-69, 1969-70 and 1970-71 were revised by including additional wealth of Rs. 85,919 and Rs. 1,000 was levied as penalty under Section 18(1)(c) and the said petition covered the period up to 1970-71 and penalty for 1971-72 under Section 18(1)(c) was levied. THE said wealth was included in the assessment year 1972-73 itself.