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TMI Blog2006 (9) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax Act, 1961 that the question proposed by him be referred to the High Court for its opinion. The Tribunal rejected the said application and, therefore, the assessee came to this Court in Income Tax Application No.56 of 1995 which was finally disposed of by Division Bench of this Court on October 10, 1995. The Court held that in the facts and circumstances of the case, question of law does arise, in the opinion of this Court. The application filed under section 256(2) was allowed with a direction to the Tribunal to refer the question proposed by the High Court. The Tribunal accordingly, has made the Reference on the question proposed by the High Court. The question reads as - "Whether in the facts and circumstances the case, when the exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax. The appeal before the CIT (Appeals) and the second appeal before the Tribunal were proved futile and, therefore, the application under section 256 (1) was also rejected. He came to this Court, and this Court, under Section 256 (2) issued directions to the Tribunal to refer the question to this Court. Learned counsel for the assessee submits that from the very frame of the question, it would clearly appear that the explanation offered by the directors and relatives of the assessee company were to be accepted and under the circumstances, section 69A would not apply. 4. The learned counsel for the assessee also took us to the order passed by this Court in Income Tax Application No.56/95 and submitted that the Court recorded its opinio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, jewellery or valuable article is not recorded in the books of account, if any, maintained by him for any source of income, and the assessee offers no explanation about the nature and source of acquisition of the money, bullion, jewellery or other valuable article, or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the money and the value of the bullion, jewellery or other valuable article may be deemed to be the income of the assessee for such financial year." 6. A bare reading and understanding of section 69A makes it clear that where the property described under section 69A is not recorded in the books of accounts, if any, maintained by the assessee from any source of income and the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation and whether on the legal footing such an explanation can be rejected. 9. On the foundational facts, when the court presumes some facts or rejects a particular factual aspect, and then records a finding in relation to acceptance of the facts and thereafter proceeds to decide, then, the question of presumption or the inference to be drawn on the strength of the facts would be a question of law. In a given case, if the circumstances show that the one and only one inference could be drawn by the authority/officer/Court but the said officer/authority/Court draws an inference which is not permisible under the law, then such findings would be perverse and the appellate/revisional Court would be entitled to set aside the said findings and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missioner, Income Tax (Appeals) but was even confirmed by the Tribunal. When the subordinate officers and the Tribunal have come to a positive concurrent finding of fact, then, there would be no scope left in favour of the assessee to argue before the High Court that the explanation offered by the assessee ought to have been accepted. 11. The question referred to us for our opinion, though within its frame incorporates a question of law but the answer would be depending upon a fact finding enquiry. When the facts are clear and are accepted, then the question of law would disappear and the High Court would not interfere in a matter like the present one, to hold in favour of the assessee that the findings are not proper and yet another vi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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