- (1.) ON a mandamus issued by this court, the following questions have been referred for our opinion : " (1) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the onus of proving ownership of the gold lay on the Department ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the addition of Rs. 44,000 representing the value of 220 tolas of gold recovered from the assessee's person could not be sustained under Section 69 A of the Income-tax Act, 1961 ?"
(2.) BIMAL Parkash Gupta was the proprietor of Vijay Soap Factory. On April 14, 1967, 220 tolas of gold was recovered from the possession of Bimal Parkash near Ganaur bus stand on G. T. Road, while he was on his way from Delhi to Ambala. The Income-tax Officer treated the gold as belonging to the assessee and deemed the value thereof to be the income of the assessee for the financial year ending March 31, 1968. The assessee failed before the Appellate Assistant Commissioner, but on appeal to the Tribunal, it was held that the Revenue failed to discharge the onus of proving that the assessee was the owner of the gold, although it was accepted by the Tribunal that the recovery was made from the possession of Bimal Parkash. The relevant observations of the Tribunal are as follows : "so far as we know, the factum of recovery of any article from the person of an individual may warrant a presumption that that individual Had the exclusive possession of that article. We are, however, aware of no authority that such presumption would lead to a further presumption that the individual concerned is the owner of that article. "
(3.) THE addition of the value of the gold was deleted by the Tribunal.;