Law: Income Tax Act, 1961

Section: 256

Income-tax----Income from undisclosed sources---Reference---Finding of Tribunal regarding cost of construction of building and source of funds for construction---Findings of fact---High Court would not interfere with findings even if it had directed reference---Indian Income Tax Act, 1961, 5.256. The assessee constructed a building. The Income-tax Officer requested the Valuation Officer to assessee the cost of construction of the building. The cost of construction up to March 31, 1974, was valued at Rs.1,19,000. However, on behalf of the assessee, it was urged that the actual investment was muchless and that the assessee had funds of Rs.1,00,595 which were sufficient to meet the entire construction cost. The Income-tax Officer after examining the details regarding the type of construction and the location of the building arrived at the cost of construction during the period at Rs.1,19,000. In respect of the amount of Rs.1,00,595 claimed to have been available with the assessee for the purpose of construction, the Income¬tax Officer did not accept the position advanced by the assessee in respect of Rs.7,990 claimed to be the assessees share in intangible addition in the case of a firm, P, for an earlier year. He considered that there was no liquid asset available with the assessee corresponding to that addition of Rs.7,990. The Income-tax Officer did not allow the claim in respect of this amount also. The Tribunal found that the cost of construction as estimated by the Income¬tax Officer was based on relevant evidence. The Tribunal also observed that the Income-tax Officer was justified in not giving credit for the intangible addition of Rs.7,990. On a reference: Held, that the decision given by the Tribunal was on clear appreciation of evidence produced by the Revenue as well as the assessee. These were findings of fact and no question of law arose from it. Although the reference had been directed by the High Court, it could not consider a question of fact. JUDGMENT P. A. MOHAMMED, J.---This income-tax reference comes up before us at the instance of the assessee. The questions of law referred to us are as follows: "(1) In view of the fact that the applicants…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492