SAIFFUDDIN Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Jaipur Bench, Jaipur ("the Tribunal"), has referred the following question for the opinion of this court;

(2.) THE assessee, Saiffuddin, is an individual. THE assessment years in question are 1971-72 and 1972-73. THE sources of income of the assessee are from the house property and share income from M/s Khan Mohd. Katha Trading Co. and M/s Mohd, Hussain Anwar AH. THE assessee purchased a plot on which, subsequently, Park View Hotel was constructed, for Rs. 53,200 from the U.I.T., Udaipur, in the financial year 1963-64. He withdrew the aforesaid sums in four equal instalments of Rs. 13,300 from M/s. Khan Mohd. Katha Trading Co. on December 18, 1963, April 8, 1964, November 10, 1964, and February 18, 1965. THEse sums were debited to a separate account in the name of the assessee in the books of the said firm. A sum of Rs. 59,760 was spent on the construction of Park View Hotel, which was started in October, 1967, and was completed in September, 1968. THE entries in the books of account of the firm were reversed in the assessment year 1968-69 by crediting the account of the assessee by Rs. 53,200 and debiting the account of the assessee and alleged two owners, viz., Allah Bux and Abid Ali, by Rs. 17,733 on July 9, 1968. THE copies of the building account of the firm's books, assessee's account. Allah Bux and Abid Ali's accounts were produced.

(3.) IN appeal, the AAC affirmed the findings recorded by the ITO. The AAC observed as under: