MUNISHWAR NATH BHANDARI, J. - (1.) REVENUE has preferred this reference application under the provisions of Section 256(2) of the IT Act, 1961. The Tribunal had refused to make reference of the questions, vide its order dt. 28th Jan., 1999.
(2.) A reference application was filed before the Tribunal under the provisions of Section 256(1) of the IT Act for reference of certain questions to this Court. Those questions were arising out of the order of the learned Tribunal vide its order dt. 25th Aug., 1998 in relation to the block asst. yrs. 1986 -87 to 1996 -97. Following question was sought for reference: Whether on the facts and in the circumstances of the case the Tribunal was justified in law in altogether ignoring the circumstantial evidence and deleting the addition of Rs. 2,80,000 made on account of undeclared payments made for the purchase of immovable property? The learned Tribunal vide its order dt. 28th Jan., 1999 had refused to refer the question. Learned Counsel appearing for the Revenue submitted that pursuant to the provisions of Section 158BB of the IT Act, assessee's undisclosed income can be computed on the basis of material or information available with the AO thus according to the learned Counsel for the Revenue, the Tribunal has wrongly refused the referred question so raised for its reference. It was thus prayed that the High Court should call interference for the reference of the issue. Learned Counsel appearing for the assessee urged that the question raised by the Revenue is not a referable question as the learned Tribunal had considered each and every aspect of the matter while denying reference of the question to the Hon'ble High Court. It was thus prayed that the reference application moved by the Revenue should be rejected.
(3.) We have considered the rival submissions of the parties and find that AO had made addition of Rs. 2,80,000 on account of investment for purchase of immovable property. The addition was deleted by the Tribunal while deciding the appeals against the order of block assessment Under Section 158BB on the ground that there was no material available with the AO on the basis of which such addition could have been made. Though it was urged that AO was in possession of the information regarding payment of money by assessee in respect of other transaction thus judging the past conduct of assessee and nature of transaction, a fair estimate was made.;