Baldeo Prasad vs Commissioner of Income Tax

The question referred to us u/s 256(1) of the Income Tax Act, 1961, is as follows :

"(1) Whether, on the facts and in the circumstances of the case, the addition pf Rs. 38,500 sustained in the assessment year 1969-70 is legal and valid?"

In this case, we are concerned with assessment year 1969-70. The assessee was assessed as individual in the assessment proceeding. The Income Tax Officer added a sum of Rs. 38,500. This sum the assessee claimed was not liable to be added to his taxable income, as it had been disclosed by him under the disclosure scheme. The Income Tax Officer did not accept the contention of the assessee on the ground that the disclosure application had not been accepted by the Commissioner.

On appeal, the Appellate Assistant Commissioner, in agreement with the views of the Income Tax Officer, rejected the appeal finding no merit in it.

The matter was agitated by the assessee before the Tribunal also. The only question canvassed before the Tribunal was in regard to addition of Rs. 38,500 which had been disclosed by the assessee under the disclosure scheme. The Tribunal rejected the claim of the assessee. The assessee thereafter moved the Tribunal for reference to this court and the Tribunal referred the question mentioned above for our opinion in terms of Section 256(1) of the Income Tax Act.

It is not in controversy that the disclosure made by the assessee had not been accepted. That not having been accepted, the necessary inference would be that the said sum of Rs. 38,500 was income from undisclosed sources. There could be no other conclusion in that regard. The Income Tax Officer, the Appellate Assistant Commissioner and the Tribunal were all of the same view. In that view of the matter, there is no escape from the position that the Tribunal was absolutely correct in upholding the addition of Rs. 38,500 in the taxable income of the assessee.

No one has appeared on behalf of the assessee. We have heard learned senior standing counsel for the Revenue. We, therefore, hold that on the facts and in the circumstances of the case, the addition of Rs. 38,500 sustained in the assessment year 1969-70 was legal and valid. The reference is thus answered in favour of the Revenue and against the assessee. In the circumstances of the case, there shall be no order as to costs.

Let a copy of this judgment be transmitted to the Income Tax Appellate Tribunal in terms of Section 260 of the Income Tax Act, 1961.