TaxTMI 
TaxTMI 
2013 (11) TMI 1442
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....urt:- "1. Whether the Hon'ble Tribunal was correct in law in deleting the addition of Rs.1,35,000/- made u/s 69 of the Act, being surrendered in the names of minors become major, under the Amnesty Scheme specially when these children do not have any known and verifiable sources of income? 2. Whether the Hon'ble Tribunal was correct in law in deleting the addition of Rs.2,50,000/- made u/s 69-A of the Act, being undisclosed income, irrespective of the fact that the amount in cash was found during search operation and there was no satisfactory explanation with the assessee? 2. The facts giving-rise to this reference are as follows:- A search was conducted by the officers of Central Excise Department at the residence of Devendra Kumar Gupt....
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....mount of Rs. 35,000/- has been disclosed as his income in the revised return, (ii) Rs. 50,000/- was gifted by his wife Smt. Rani Gupta on 21.03.1986 (iii) Rs. 2,50,000/- was received as an advance for sale of his agricultural property from Kali Charan and Tula Ram and (iv) Rs. 2,22,000/- has been disclosed in the returns of the children in the Amnesty Scheme, which has been accepted by the Assessing Officer. 5. The Assessing Officer by his order dated 20.03.1989 held that gift of Rs. 50,000/- by Smt. Rani Gupta was genuine. However he found Rs. 2,50,000/- and Rs. 2,22,000/- as the income of the assessee from undisclosed sources and made addition of this amount and thus total taxable income of the assessee was held as Rs. 5,30,467/-. The as....
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....d Tula Ram before the Assessing Officer and these witnesses had been wrongly disbelieved. The Tribunal further held that the amount in the names of major children of the assessee cannot be included in the income of the assessee. Accordingly the Tribunal directed for deleting the aforesaid amounts from the income of the assessee. The assessee filed an application under Section 254 (2) of the Act for rectification of the order on the ground that the return in the names of minor children of the assessee were filed in the Amnesty Scheme and had been accepted by the Assessing Officer as such these amounts were also liable to be deleted. The Tribunal vide order dated 09.03.1995 rectified this order and held that as the children of the assessee ha....
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....rightly deleted addition of this amount. 10. Sri Upadhyay further submitted that the assessee has given contradictory statements in the proceedings under Section 132 (5) of the Act and in the assessment proceeding in respect of the amount recovered from his house on 10.05.1985. Kali Charan and Tula Ram, who allegedly advanced that amount were not reliable witnesses in as much as they had not disclosed their source of income or their bank accounts, so as to substantiate payment of Rs. 1,50,000/- and Rs. 1,00,000/- respectively in cash to the assessee. By the time when the aforesaid amount was allegedly advanced, no written agreement was executed in their favour as such payment of such a heavy amount by these ordinary persons was highly doub....