Delhi High Court
Bal Kishan Dass Goel vs Commissioner Of Income Tax on 12 August, 1991
Author: B Kirpal
Bench: B Kirpal, D Jain
JUDGMENT
B.N. Kirpal, J.
1. The Tribunal has referred the following two question to this Court :
"(1) Whether on the facts and circumstances of the case there was evidence upon which the Tribunal could properly arrive at their decision and whether on such facts their decision was correct in law ?
(2) Whether there is any evidence or material to hold that the sum of Rs. 18,563 was the undisclosed income of the applicant ?"
2. This reference is in respect to the asst. yr. 1963-64. It appears that in the asst. yr. 1965-66, the assessed had made certain deposits with some persons. It was explained that these deposits had come from the sale of certain gold ornaments. These gold ornaments are stated to have been left by the assessed's mother on her death. It was further alleged by the assessed that his grandfather had told him about the existence of the gold ornaments in 1963 and these ornaments were subsequently sold. The sale proceeds of these gold ornaments were Rs. 18,563 according to the assessed.
3. As the alleged sale of the gold ornaments was stated to be in 1963, the ITO initiated proceedings in respect to the asst. yr. 1963-64 and included the sum of Rs. 18,563 as income from undisclosed sources.
4. An appeal was filed against this order and it was allowed by the AAC. Thereafter the ITO filed an appeal before the Tribunal. The Tribunal posed a question whether the sum of Rs. 18,563 was as a result of the sale of gold ornaments belonging to the assessed's mother or not. The Tribunal went through the entire evidence on the record including the financial situation of the assessed's mother and it came to the conclusion that the said sum represented the undisclosed income of the assessed. The explanation of the assessed with regard to the source of deposit of Rs. 18,563 was not found to be satisfactory.
5. After the Tribunal had rejected the application under s. 256(1), an application under s. 256(2) was filed and this Court directed the aforesaid question to be referred.
6. At the time of hearing of the reference today, there is no one present on behalf of the assessed. We have gone through the order of the Tribunal as well as the statements of the assessed and his reference and, in our opinion, there was evidence on the record on the record on the basis of which the Tribunal came to the conclusion that the addition of Rs. 18,563 was justified.
7. When there is a cash credit in the books of accounts it is up to the assessed to prove its source. The evidence which was placed on the record was carefully examined and, thereafter the Tribunal gave finding that the story regarding the ornaments being left by the mother of the assessed was not true and the adjustments made in the books of accounts represented undisclosed income. The issue involved before the Tribunal was essentially one of fact and on the facts before it, the Tribunal came to the conclusion against the assessed.
8. The questions of law which have been referred are accordingly answered in the affirmative and against the assessed.
9. There will be no order as to costs.
