Law:

Section:

Section 68, read with section 256 of the Income-tax Act, 1961 - Cash credits - Assessment year 1975-76 - Whether when a question was not raised nor argued nor considered by Tribunal, it could not be concluded that said question subsequently referred by Tribunal was one which arose out of order of Tribunal - Held, yes - Whether, therefore, even if High Court directed Tribunal to refer such a question, was is not bound to answer said question when it finally came up for decision - Held, yes FACTS For the relevant assessment year huge additions were made to the income of the assessee under the had "other sources". On appeal the Tribunal upheld the aforesaid additions. The assessee filed an application to refer the question but the same was dismissed. Thereupon, the assessee filed an application under section 256(2) and the High Court directed the Tribunal to refer the question of law. HELD In the instant case the question as to whether section 68 could apply only if the cash credits were found in the books of the assessee himself and not in the books of the firm of which he was only a partner, was not raised before the Tribunal and was not considered by it. If the said question was not raised nor argued nor considered by the Tribunal, it could not be said that the question now referred by the Tribunal was one which arose out of the order of the Tribunal. Even if this court had directed the Tribunal to refer such a question, this court was not bound to answer the said question when it finally came up for decision. Note : The case has been decided in favour of the revenue. CASE REFERRED TO CIT v. Anusuya Devi [1968] 68 ITR 750 (SC). Jose Joseph for the Applicant. P.K.R. Menon for the Respondent. JUDGMENT K.S. Paripoornan, J.-At the instance of the assessee and as directed by this court in Original Petition No. 6578 of 1982, the Income-tax Appellate Tribunal has referred the following question of law for the decision of this court: "Should not the Tribunal have held that section 68 can apply only if the cash credits are found in the books of the applicant himself and not in the books of the firm of which he was only a partner?" The petitioner is an assessee to…

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