ADDITIONAL COMMISSIONER OF INCOME TAX Vs. MOHAN ENGINEERING COMPANY

JUDGEMENT

(1.) IN pursuance of this court's order dated September 19, 1973, the INcome-tax Appellate Tribunal, Patna Bench "A" (hereinafter to be referred to as "the Tribunal"), has stated the case and referred the following question of law for the opinion of this court:

(2.) REGARDING the deposit of Rs. 1,600 in the name of Jit Ram, it was stated on behalf of the assessee, that he was an old man and was unable to move about. According to the ITO, the deposit in his name also remained unproved and he treated this amount as the assessee's income from undisclosed sources. The order of the ITO has been marked as annexure-A to the statement of the case.

(3.) HOWEVER, the Tribunal accepted the alternative contention made on behalf of the assessee. The Tribunal referred to the fact that the addition of Rs. 62,500 had been ultimately confirmed, on appeal, by the Tribunal. The Tribunal, as a matter of fact, found as follows: "The deposit of Rs. 62,500 was withdrawn between November 28, 1961, to February 6, 1963." The Tribunal further found that the credits in the assessment year in question had come after the withdrawals had been made of the amount of Rs. 62,500 in the preceding year. The Tribunal accepted the contention advanced on behalf of the assessee on the following grounds: