COMMISSIONER OF INCOME TAX Vs. BHANWARLAL

JUDGEMENT

(1.) THE Revenue has moved this application under Section 256(2) of the Income-tax Act, 1961, with a prayer that the Income-tax Appellate Tribunal, Jaipur Bench, Jaipur, may be directed to refer the following two questions of law for the opinion of the High Court in the case of assessee, Bhanwar Lal, for the assessment year 1985-86, which, according to the Revenue, arise out of the order dated April 30, 1993, passed by the Tribunal in Income-tax Appeal No. 1333/(JP) of 1989 :

(2.) THE brief facts of the case are that the assessee is an individual. A search was conducted at the residence of the assessee by the Income-tax Department under Section 132 of the Act on August 25, 1987, which continued up to August 31, 1987. During this raid, the statements of the assessee and his sons were recorded. THE assessee, for the assessment year 1985-86, on February 23, 1988, filed the return of his income declaring the taxable income at Rs. 21,000 and agricultural income at Rs. 1,85,700. THE taxable income of Rs. 21,000 shown in the return was later on revised to Rs. 36,694. THE Income-tax Officer, Central Circle, Jodhpur, for the assessment year 1985-86, vide order dated February 21, 1988, completed the assessment on a total income of Rs. 26,81,476.

(3.) THE Tribunal, while deciding the appeal filed by the assessee, after considering the facts and circumstances of the case and the evidence on record, in paragraph No. 14 of its judgment, decided these two questions with the following observations :