Law: Income Tax Act, 1961

Section: 256,.256(2).

Income-tax----Reference---Addition made on account of low household expenses and understatement of marriage expenses---Tribunal holding that assessee had made only an estimate of marriage expenses---That household expenses could have been met from agricultural lands and farms held by assessee---Finding of Tribunal based on appreciation of evidence and is a finding of fact---No question of law arises for reference---Indian Income Tax Act, 1961, S.256(2). For the assessment year 1985-86, the assessee filed a return declaring an income of Rs.21,000 and agricultural income of Rs.1,85,700. The taxable income was, later on, revised to Rs.36,694. The Income-tax Officer completed the assessment on a total income of Rs.26,81,476. The Commissioner (Appeals) allowed the appeal of the assessee in part and set aside the addition of Rs.21,58,000 with a direction to the Assessing authority )o make further enquiry. The Commissioner (Appeals) also set aside the ~idition of Rs.2,32,717 with the direction to the Assessing Authority to mike further enquiry. He also deleted the addition of Rs.20,010 which was the amount of the sale of plot of land by the sons of the assessee but, however, confirmed the addition of Rs.15,000 which was the amount of estimated expenses on the marriage of the son of the assessee and Rs.35,000 which was the amount of the difference of the household expenses. Both the assessee and the Revenue filed appeals to the Tribunal. The Tribunal allowed the appeal of the assessee in part holding that the assessee had given only an estimate of, the household expenses and from that it could not be concluded that his monthly household expenses in the financial year 1984-85 were Rs.5,000 and neither less nor more and that taking into account the fact that he had agricultural lands and. farms in his own name and in the names of all members of his family, it could not be ruled out that the household expenses might have been met from the farm products and, moreover, if the withdrawals of one P were considered, the total expenses worked out to Rs.41,000. Similarly, the marriage expenses incurred in 1984 were shown in the return on an estimated basis. Therefore, the…

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