1999 (12) TMI 21 - HC - Income Tax

Summary

Issues involved: Application u/s 256(2) of the Income-tax Act challenging Tribunal's order on addition of unexplained investment in jewellery.

Issue 1 - Addition of unexplained investment in jewellery:
The Revenue questioned the Tribunal's decision to delete the addition of Rs. 3,82,895 under section 69A of the Income-tax Act. The assessee claimed the jewellery list was for future use related to his son's marriage. The Commissioner (Appeals) deleted the addition after considering submissions. The Tribunal found it was just a list, not actual jewellery, and no evidence supported undisclosed investment. The Tribunal noted that under section 69A, jewellery can be deemed income only if unexplained. The Commissioner (Appeals) and Tribunal accepted the explanation, concluding no legal issue.

Issue 2 - Appreciation of facts by the Appellate Tribunal:
The Revenue also contested whether the Tribunal correctly understood the facts to reach its decision. The Tribunal found the Assessing Officer failed to appreciate the explanation provided by the assessee and made the addition without evidence. Both the Commissioner (Appeals) and Tribunal accepted the explanation, emphasizing the assessing authority's role in determining reasonableness. As both appellate authorities accepted the explanation, no legal question arose, leading to the rejection of the application u/s 256(2) of the Income-tax Act.