Law:

Section:

Section 256(2) of the Income-tax Act, 1961-Reference-Whether, on an application under section 256(2) made by revenue, a reference can be called on a question of law suggested by assessee-Held, yes Facts The CIT moved an application under section 256(2) for a direction to the Tribunal to refer to the High Court a question of law arising out of its order. The assessee opposed the application but, however, contended that in case the Court was inclined to call any reference, the assessee was also entitled to seek reference on the questions of law suggested by him. Held If a reference is called, both parties are entitled to suggest questions for reference provided the same arise out of the same order of the Tribunal. Case review Educational & Civil List Reserve Fund v. CIT 1963 RLW 383 followed. JUDGMENT This is a reference application under s. 256(2) of the I.T. Act, 1961 (hereinafter referred to as " the Act "), for giving a direction to the Incometax Appellate Tribunal for stating the case and to refer the question of law arising out of its order dated April 14, 1976. The non-petitioner, Dr. A. K. Sharma (hereinafter referred to as " the assessee ") is a medical practitioner in the employment of the Rajasthan Govt. The assessee filed a return for the assessment year 1966-67 on May 21, 1967, showing his total income of Rs. 21,745 which included rupees 18,000 as income from private practice. The assessing authority determined the income of the assessee from private practice at Rs. 25,000 on estimate basis. Subsequently the ITO came to know that the assessee had not disclosed his true income from private practice and as such the assessing authority initiated proceedings for the reassessment under s. 147(a) of the Act. In the course of the reassessment proceedings it was brought to the notice of the assessee that he had received Rs. 60,751 as consultation and injection charges from the employees of the Posts and Telegraphs Dept. which he had failed to mention in his income-tax returns. The assessee contended before the assessing authority that the aforesaid amount was excessive and he could not have received more than Rs. 40,000 by way of gross receipts from the…

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