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TMI Blog2013 (11) TMI 1442X X X X Extracts X X X X X X X X Extracts X X X X ..... also brought on record - It was proved that money was received by them - These witnesses were cross examined by the Revenue - Decided against Revenue. - Income Tax Reference No. - 89 of 1997 - - - Dated:- 19-12-2012 - Hon'ble R.K. Agrawal And Hon'ble Ram Surat Ram (Maurya),JJ. For the Petitioner : S S C, B. Agrawal, R.K. Upadhyay For the Respondent : Sujeet Kumar, R.S. Agrawal, Ravi Kant, Vikrant ORDER 1. Pursuant to the direction given by this Court dated 16.05.1996, under Section 256 (2) of the Income Tax Act, 1961 (hereinafter referred to as the Act), the Income Tax Appellate Tribunal (Delhi Bench "D"), Delhi (hereinafter referred to as the Tribunal) has referred the following two questions for opinion to this Court:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es of Imperial Glass Emporium Ltd. (ii) Rs. 35,000/- as gift from wife and (iii) Rs. 16,741/- as agricultural income. The Assessing Officer issued notice under Section 143 (3) of the Act on 13.02.1989 calling the explanations of the assessee in respect of various amounts, in short this can be categorized as (i) Rs. 35,000/- deposited in the personal account of the assessee on 12.03.1986, (ii) Rs. 50,000/- deposited in the personal account of the assessee on 21.03.1986, (iii) Rs. 2,50,000/- recovered during search by Central Excise Department on 10.05.1985 and (iv) Rs. 2,22,000/- surrendered by the children of the assessee, who had no separate independent source of income. 4. In reply to the aforesaid notice, the assessee stated that (i) a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1991 held that Rs. 2,22,000/- shown in the names of the children of the assessee, is not covered either under substantive provisions of Section 271 (1) (c) of the Act or Explanation-1 to it, however on the amount of Rs. 2,50,000/-, penalty at the minimum rate was liable to be levied. On these findings the appeal was partly allowed and the Assessing Officer was directed to re-calculate the amount of penalty. The Revenue filed an appeal from the aforesaid order which has been dismissed by the Tribunal on 02.08.1996. 7. The assessee filed an appeal from the order dated 29.12.1989. The appeal was heard by the Tribunal who by order dated 13.05.1994 held that the assessee has fully explained the amount of Rs. 2,50,000/- by examining Kali Charan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see had no verifiable source of income as such income disclosed in the names of the children was the income of the assessee from undisclosed sources and was liable to be added in his income under Section 66 of the Act. In any case, the income disclosed in the names of the children, who were minors during the period of the assessment year 1986-87, was liable to be included in the income of the assessee. The Tribunal has illegally deleted these income. So far as money in the names of the children of the assessee is concerned, the children filed returns under Amnesty Scheme, which had been accepted by the Assessing Officer, treating their separate income as such this amount was not liable to be added in the income of the assessee. The Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The Assessing Officer and the Commissioner of Income-tax (Appeal) have disbelieved these witnesses only for the reasons that as by that time no written agreements were executed in their favour as such payment of such a heavy amount was improbable. These witnesses have proved source of money and payment made by them by way of advance as they wanted to purchase the land of the assessee. They are independent witnesses. Their statements were not liable to be disbelieved. The Tribunal has not committed any illegality in relying upon their statements and rightly deleted this amount. 11. For the aforesaid discussions our answer is as follows:- Question No.1 referred to us is answered in the affirmative i.e. in favour of assessee and against ..... X X X X Extracts X X X X X X X X Extracts X X X X
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