- (1.) This appeal has been filed by the assessee under section 260A of the Income-tax Act, 1961 (in short "the Act"), against the order dated June 15, 2000, passed by the Income-tax Appellate Tribunal, Chandigarh Bench, Chandigarh (hereinafter referred to as "the Tribunal"), in I.T.A. No. 55/Chandi/97, for the block assessment period from April 1, 1986, to October 31, 1996, raising the following substantial questions of law : (i) Whether the Income-tax Appellate Tribunal, Chandigarh, did not err in law in sustaining the addition of Rs. 2,30,000 as 'undisclosed income' of the block period, represented by arbitrary estimate of the expenses incurred in the marriage of the assessee's children and Rs. 2 lakhs as household expenditure where such conjectural additions clearly fell out of the definition of 'undisclosed income' as adopted in Chapter XIV-B of the Income-tax Act ? (ii) Whether the Tribunal did not err in law in sustaining the above mentioned additions when there was no material whatsoever found as a result of search to support such additions and additions were simply based on surmises ? (iii) Whether the Tribunal was justified in law in partially setting aside the assessment and directing the Assessing Officer to make re-assessment by applying the provisions of section 145(2) of the Income-tax Act ignoring the mandate and requirements of section 158BA(3) ? (iv) Whether the Tribunal while so setting aside the assessment failed to consider that the provisions of section 145(2) as such could not be applied to the determination of income of the period from April 1, 1986, to October 31, 1996, on a proper interpretation of the applicability of the provisions of Chapter XIV-B of the Income-tax Act ? The facts necessary for adjudication as narrated in the instant appeal are that the search and seizure operation was conducted on October 31, 1996, at the business and the residential premises of the assessee. During the search proceedings, pertain incriminating documents including units and shares were found and seized. Besides that, cash amount of Rs. 3,220 and gold jewellery weighing. 195 gms. and 350 silver coins were found. In pursuance thereof, the assessment order was passed by the Assistant Commissioner of Income-tax on October 29, 1997, making additions of Rs. 4,90,600 as household expenses, Rs. 6,64,000 as marriage expenses and other additions on account of alleged undisclosed income for the block period in question. Feeling aggrieved, the assessee filed an appeal before the Tribunal who, vide order dated June 16, 2000, sustained an addition of Rs. 2 lakhs on account of low household withdrawals and Rs. 2,30,000 on account of marriage expenses and set aside the additions made under section 145(2) of the Act regarding valuation of stock and remanded the matter to the Assessing Officer. Hence, the present appeal by the assessee.
(2.) We have heard learned counsel for the parties and have gone through the record very carefully.
(3.) The aforesaid questions of law relate to the following additions made by the Assessing Officer during the course of the block assessment proceedings : (i) the marriage expenses which has been sustained by the Tribunal to the extent of Rs. 2,30,000; (ii) low household expenses which has been maintained at Rs. 2 lakhs; and (iii) regarding stock valuation which has been remanded to the Assessing Officer.;