DHANDIA JEWELLERS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) EARLIER, in the application under Section 250(2) of the Income-tax Act, 1961, the assessee required the Income-tax Appellate Tribunal to draw up the statement of case for the assessment year 1971-72 and to refer the questions of law to this court. On the request of the assessee, the Tribunal was directed to refer the following questions of law to this court :

(2.) WHETHER, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in sustaining the addition of Rs. 20,714 as the income of the assessee from undisclosed sources or the said amount should have been added to the trading account of the assessee or telescoped with the trading account of the assessee keeping in view the facts that intangible additions have been made ?"

(3.) CONSEQUENTLY, we answer question No. 1 in favour of the Department and against the assessee while we answer question No. 2 in favour of the assessee and against the Department. No order as to costs.