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High Court Of Allahabad
R.M. Sahai, R.K. Gulati, JJ.
Avdhesh Kumar Jain - Appellant
Versus
Commissioner Of Income-Tax - Respondent
Income-tax Application 220 of 1988
Decided on: Feb 27, 1989
Undisclosed Source - Income Tax - The court upheld the assessment of a sum of Rs. 28,000 as income from undisclosed sources in the hands of the assessee, as the assessee failed to produce satisfactory evidence of engaging in agricultural activities and the sale of agricultural produce.
Fact of the Case:
The assessee contested the assessment of a sum of Rs. 28,000 as income from undisclosed sources, claiming it was exempt as income from agriculture. The Income-tax Appellate Tribunal found that the assessee failed to provide satisfactory evidence of engaging in agricultural activities and the sale of agricultural produce, leading to the assessment being upheld.
Finding of the Court:
The court found that the findings of the Income-tax Appellate Tribunal were based on appreciation of evidence and did not give rise to any question of law. The court also upheld the Tribunal's view that 50% of the income from the sale of potatoes stored in cold storage was exempt as income from agriculture.
Issues: Assessment of income from undisclosed sources, exemption of income from agriculture, justification of Income-tax Appellate Tribunal's views.
Ratio Decidendi: The court upheld the assessment of income from undisclosed sources due to the lack of satisfactory evidence of agricultural activities and sales. Additionally, the court affirmed the Tribunal's decision to exempt 50% of income from the sale of potatoes stored in cold storage as income from agriculture.
Final Decision: The application was found to be without merit and was accordingly rejected.
1. THIS application under Section 256(2) of the Income-tax Act relates to the assessment year 1978-79. Basically, two questions have been raised in this application. The first question is whether a sum of Rs. 28,000 which was assessed as income from undisclosed source was liable to be so assessed. According to the assessee, he had earned that amount from agriculture and it was thus exempt from the tax under the Income-tax Act.
2. THE concurrent findings of the tax authorities including the Income-tax Appellate Tribunal are that the assessee had failed to produce any satisfactory evidence about his being engaged in agricultural activities. THE further finding is that the assessee was also not able to state to whom the said agricultural produce was sold. Consequent to the aforesaid finding, the Tribunal has held that the sum of Rs. 28,000 was rightly assessed as income from undisclosed sources in the hands of the assessee. Having heard learned counsel for the parties, we are of the opinion that the findings recorded by the Income-tax Appellate Tribunal are pure findings of fact which are based on appreciation of evidence. THE view taken by the Tribunal is a possible view on the evidence that was placed before it in our opinion, the order of the Tribunal does not give rise to any question of law on the findings recorded by it.
Coming to the second question, the only controversy raised is whether the Income-tax Appellate Tribunal was justified in taking the view that 50% of the income from the sale of potatoes stored in the cold storage by the assessee was exempt as income from agriculture. The findings recorded by the Tribunal in that regard also are concluded by the findings of fact and in our opinion do not give rise to any question of law.
3. THIS application is without any merit and is accordingly rejected.
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