COMMISSIONER OF INCOME TAX Vs. PRAKASH CHAND DHADDA

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, vide its order dated December 7, 1983, has referred the following question of law arising out of the Tribunal's order dated March 14, 1983, under Section 256(1) of the Income-tax Act, 1961, in respect of the assessment year 1978-79 :

(2.) THE facts of the case are that the assessee made a disclosure of his concealed income in the form of precious stones under the Voluntary Disclosure Scheme, 1975, and that part of the precious stones out of the stock disclosed worth Rs. 21,168 and Rs. 1,272 had been contributed towards capital on November 10, 1977, relevant to the assessment year 1978-79 in the firm, Jus Gems, on the market value. Thus, against the book value of the stock of Rs. 21,168 and Rs. 1,272, the market value was taken at Rs. 58,800 and Rs. 2,534, respectively, at the time of contribution and the assessee's capital account was credited by these two amounts aggregating to Rs. 61,344. THE Income-tax Officer, A-Ward, Jaipur, while finalising the assessment said that the amount declared in the disclosure had already been accounted for in the assessment year 1977-78. It has not been established as to whether the assessee had any amount surplus from the disclosure to be introduced this year. It was found that the assessee had introduced the capital declared in the disclosure capital of Rs. 49,950 and goods contributed as capital of Rs. 28,992 and disclosure capital in Dhadda and Co. of Rs. 23,999. THE Income-tax Officer, therefore, observed that these disclosures have already been accounted for in the assessment year 1977-78. THE amount was assessed as income from other sources.