Commissioner of Income-tax Vs. M.A. Panjaliammal - Court Judgment

Ratnam J.

1. In this tax case petition under section 256(2) of the Income-tax Act, 1961, the Revenue seeks a direction to the Tribunal to refer the following question of law for the opinion of this court :

'Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the value of the jewellery found at the time of the search cannot be added under section 69A of the Income-tax Act and deleting the entire addition of Rs. 91,950 ?'

2. We have carefully perused the order of the Tribunal. On a consideration of the materials made available before it, the Tribunal had found that the assessee had given a substantial as well as an acceptable explanation with reference to the source of the jewellery found at the time of the search. It is seen from the order of the Tribunal that the assessee had satisfactorily explained that the jewellery belonged to her mother who died in 1979 and that they had been kept with the brother of the assessee till such time as they were handed over to her and the omission of the part of the assessee to include the value of the jewellery in her wealth-tax returns was only on account of its custody with the brother of the assessee. Therefore, according to the Tribunal, nothing turned on the omission on the part of the mother of the assessee to mention it in her well. The Tribunal, on the fact and circumstances of the case, had arrived at the conclusion that the explanation of the assessee is reasonable and acceptable and that, therefore, there was no justification for the addition of Rs. 91,950 under section 69A of the Income-tax Act. We are satisfied that no referable question of law arises out of the order the Tribunal. The tax case petition is dismissed. No costs.