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TMI Blog1958 (8) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... ain, J. This is an application under section 66(2) of the Income- tax Act asking us to direct the Income-tax Appellate Tribunal to state the case raising questions of law and to refer the same to this court for decision. The petitioners are a partnership firm and are carrying on business as contractors for the construction of Government buildings, etc. The firm during the assessment year 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Income-tax Act and reopened the assessment of 1943-44 assessment year. The Income-tax Officer added a further sum of ₹ 1,52,750 as profits obtained by selling in black-market part of the iron and cement received from Government. On appeal the Income-tax Tribunal held that section 34(1)(a) applied to the case, but the quantum of addition was reduced to ₹ 50,000. The application under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounds on which the Income-tax Officer may take action. Power under this section cannot be exercised on mere rumours or suspicions. It is argued on behalf of the firm that there is no material on the record on which the Income-tax Officer could be said to have had reason to believe that certain profits had escaped assessment. This is a question of law on which the case should be stated by the Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there is no material on the record to justify the addition of ₹ 50,000 over and above ₹ 1,00,000 already added under this head. This, in our opinion, also raises a question of law on which the Tribunal should state the case and refer the same to this court for decision. Accordingly, this petition is accepted with costs and the Income-tax Appellate Tribunal is directed to state the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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