MUNISHWAR NATH BHANDARI,J. - (1.) BOTH these reference applications have been filed under the provisions of Section 256(2) of the Income -tax Act, 1961, by the Revenue. As the subject -matter of both the reference applications are same, therefore, they are being disposed of by the common order. The Income -tax Appellate Tribunal had refused to make reference of any of the questions sought to be referred to the High Court vide its order dated January 28, 1999.
(2.) A reference application was earlier filed before the Income -tax Appellate Tribunal under the provisions of Section 256(1) of the Income -tax Act for reference of certain questions to this Court. Those questions were arising out of the order of the learned Tribunal vide its order dated August 25, 1998, in relation to the block assessment years 1986 -87 to 1996 -97. Following questions were sought for reference. (1) Whether, on the facts and in the circumstances of the case, the Income -tax Appellate Tribunal was justified in law in altogether ignoring the circumstantial evidence and deleting the addition of Rs. 1,55,000 made on account of undeclared payments made for the purchase of immovable property? (2) Whether, on the facts and in the circumstances of the case, the Income -tax Appellate Tribunal was justified in law in altogether ignoring the circumstantial evidence and deleting the addition of Rs. 60,000 made on account of undeclared payments made for the purchase of immovable property? The learned Income -tax Appellate Tribunal, vide its order dated January 28, 1999, has refused to refer both the questions. Learned Counsel appearing for the Revenue submitted that pursuant to the provisions of Section 158BB of the Income -tax Act, the assessee's undisclosed income can be computed on the basis of material or information as are available with the Assessing Officer. Thus according to the learned Counsel for the Revenue, the Appellate Tribunal has wrongly refused the referred question so raised for its reference. It was thus prayed that the High Court should call for the reference of the issues.
(3.) LEARNED Counsel appearing for the assessee urged that both the questions raised by the Revenue are not referable questions as the learned Tribunal had considered each and every aspect of the matter denying reference of both the questions to the hon'ble High Court. It was thus prayed that the reference applications moved by the Revenue should be rejected.;