R.K. Agrawal, J. - (1.) The Tribunal, Allahabad has referred the following questions of law under Section 256(2) of the IT Act, 1961 (hereinafter referred to as "the Act") for opinion to this Court : 1. Whether the Tribunal was legally correct in upholding the addition of Rs. 16,100 representing the value of jewellery found by the Department at the time of search carried out on 8th Oct, 1974, in the hands of the assessee-HUF, by relying on the provisions of Section 132(4A) which were introduced later on ?
(2.) Whether the Tribunal was legally correct in holding that legal plea with regard to the question of ones which was not before the authorities below could not have been raised for the first time before it and the addition of Rs. 16,100 was liable to be confirmed ?
(3.) Whether there was any material before the Tribunal in upholding the addition of Rs. 16,100 on account of the value of ornaments, in the hands of the assessee-HUF ? 2. The present reference relates to the asst. yr. 1975-76. Briefly stated the facts giving rise to present reference are as follows : The applicant is assessed to income-tax in the status of HUF. A search was conducted in the applicant premises on 8th Oct., 1974 in which 23 kgs. of silver ornaments were seized. The applicant stated that these ornaments belonged to the parties who had pawned them with him. The articles did not bear the slip indicating the name of the person who pawned them. The applicant also did not produce any evidence to show that the ornaments have been pawned with him. The authorities, therefore, held that those ornaments belonged to the applicant and he had failed to explain the source of their acquisition. The value of the seized silver ornaments of Rs. 16,100 was treated as his income. The addition has been upheld up to the stage of the Tribunal. 3. We have heard Sri Vikram Gulati, learned Counsel for the applicant and Sri Shambhoo Chopra, learned standing counsel for the Revenue.;