1978 (6) TMI 43

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.... properly worded and we reframe the same as under : " Whether, on the material on record, the finding of the Tribunal for deletion of the sum of Rs. 25,000 from the income of the assessee was based on mere conjectures and surmises or was such that no person judicially acting and properly instructed as to the relevant law could have come to the determination reached? " This question relates to the assessment year 1954-55, the accounting period being April 1, 1953, to March 31, 1954, Kamini Kaushal, the assessee, is a film artist. On December 7, 1953, her account with the Lloyds Bank of India showed a credit of Rs. 25,000 and withdrawal of a like amount by cash on December 12, 1953. The ITO wanted the assessee to offer her explanation for t....

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....fairly brought to the notice of the Tribunal that there was on record a letter from the Lloyds Bank dated March 19, 1959, according which the credit entry of Rs. 25,000 in the assessee's account with the bank on December 7, 1953, was as per pay slip per Union Bank of India Ltd. from Navkala Niketan for Rs. 25,000. As the representative on behalf of the revenue was fair enough to bring this piece of evidence to the notice of the Tribunal, the Tribunal felt that had proper attention been paid to this letter from the bank, itwas doubtful whether the departmental officers would have taken the view. According to them, the suspicion arose because of the intervention of the hundi banker whose account books were not available in the chain of the tr....

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....ase, it would be permissible for this court to consider whether the finding of the Tribunal is based on conjectures and surmises and is such that no reasonable man acting with a sense of responsibility could have arrived at. So far as the position in law is concerned, there is no controversy. This court in exercise of its advisory jurisdiction under the I.T. Act can go into the validity of the findings of the Tribunal if the Tribunal failed to take into account the relevant material on record in arriving at its finding or acted on inadmissible evidence or misread the evidence or based its conclusion on conjectures and surmises. When such is the position, it is open to this court to ignore the findings of the Tribunal and re-examine the iss....

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....tan. The Tribunal pointed out that in the case they were not concerned directly with the loan advanced by hundi banker, Naraindas Lakshmichand, to producer, R. K. Vyas. The amount of Rs. 25,000 was sought to be added by the taxing authorities as the income of the assessee from undisclosed sources on the basis of credit entry in her bank account. That credit entry was satisfactorily explained by the assessee by production of the correspondence between the producer and distributor, Masuri Films and Finance Ltd., Delhi. This correspondence was exchanged by registered post and there was no possibility of any suspicion about their genuineness. It was on the basis of this material that the Tribunal accepted the version of the assessee that she re....