MUNISHWAR NATH BHANDARI,J. - (1.) TRIBUNAL , Jaipur Bench, Jaipur, referred following question for its answer/opinion of this Court vide its order dt. 16th Feb., 1999: Whether on the facts and in the circumstances of the case the Tribunal was justified in holding that additions made on the basis of material collected during the course of such survey was illegal?
(2.) REVENUE had moved an application for seeking reference on three questions pertaining to the order of the Tribunal in ITA Nos. 765, 663 and 664/Jp/1992. Out of three questions, Tribunal referred only question No. 3 with some modification. The brief facts giving rise to the question referred are that a survey under Section 133A of the IT Act was conducted on 25th Feb., 1987. During the course of survey, excess stock was found, thereby addition was made by a sum of Rs. 3,24,544 by the AO. Aggrieved by the said addition, assessee preferred appeal before the CIT(A) where the appeal of the assessee was partly allowed. Assessee and Department preferred second appeal before the Tribunal. In this second appeal, assessee was permitted to take additional ground, questioning the competence of Inspector to hold survey in violation of Section 133A of the IT Act. The learned Tribunal thereafter decided appeal in favour of assessee, the additions made by the AO based on inventory of stock taken during the course of survey held to be illegal as Inspector was not competent to conduct survey.
(3.) THE Revenue thereafter preferred an application for reference of question for seeking opinion of the High Court after referring two judgments of the Hon'ble apex Court. The learned Tribunal thereafter referred one issue where the question raised is as to whether additions made on the basis of material collected during the course of survey is legal or not.;