1995-VIL-381-MAD-DT

Equivalent Citation: [1995] 216 ITR 696

MADRAS HIGH COURT

Date: 10.03.1995

SKS. RAJAMANI NADAR

Vs

COMMISSIONER OF INCOME-TAX

BENCH

Judge(s)  : K. A. SWAMI., RAJU 

JUDGMENT

The judgment of the court was delivered by

K. A. SWAMI C. J.--The Tribunal has referred the following question to this court for opinion :

" Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in setting aside the finding relating to the addition made of Rs. 1,89,936 by resorting only to the provisions of section 69D and in restoring the matter to the Income-tax Officer to examine the genuineness of the borrowings on general principles after considering all the evidence and thereafter to decide whether any addition is to be made or not in accordance with law including, of course, the applicability of the provisions of section 69D, on which aspect the Tribunal expressly stated no finding was being rendered in the present order ? "

As the Tribunal has remitted the matter for deciding the question as to the genuineness of the transaction in question evidenced by the instrument before deciding as to whether the instrument is a hundi or a pro note, unless that question is decided, the question as to whether the amount covered by the document is an income for the purpose of assessment under section 69D of the Act does not arise and it arises only after it is held that the transaction is genuine. That being so, we are of the view that the question referred to us does not arise for consideration at this stage.

We, accordingly, return the reference with a direction that such a question does not arise for consideration at present and keep open all the contentions. However, the case should be decided in the light of the Division Bench decision of this court in CIT v. Paranjothi Salt Co. [1995] 211 ITR 141, in the event it is held that the transactions are genuine. No order as to costs.

 

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