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Determining whether the Tribunal was justified in deleting the addition of Rs. 25,000 from the assessee's income based on the material on record. Analysis: The case involved a question regarding the addition of Rs. 25,000 to the assessee's income for the assessment year 1954-55. The Income Tax Officer (ITO) concluded that the bank deposit represented undisclosed income. The assessee's explanations were considered, including evidence from various parties and correspondence. The Assessing Officer (AO) and the Appellate Authority Commission (AAC) upheld the addition. However, the Tribunal reversed the decision based on new evidence from Lloyds Bank and the correspondence between the producer and distributor, which were sent by registered post, supporting the assessee's explanation. In the appeal before the High Court, the revenue contended that the Tribunal's decision was based on conjectures and surmises. The court clarified that it could review the Tribunal's findings if they were based on misinterpretation, inadmissible evidence, or conjectures. Referring to the Supreme Court's decision in CIT v. S. P. Jain, the court highlighted the circumstances under which findings could be considered vitiated. The High Court analyzed the evidence considered by the Tribunal, emphasizing the fairness of the revenue's representative in presenting crucial bank evidence. The Tribunal accepted the assessee's explanation based on the correspondence and concluded that the probabilities favored the assessee. The court noted that the Tribunal's decision was based on a thorough evaluation of the evidence on record and found no basis to consider it capricious or perverse. Therefore, the court upheld the Tribunal's decision to delete the Rs. 25,000 addition from the assessee's income, ruling against the revenue and ordering them to pay the assessee's costs.
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