Anantharam Veerasingaiah & Co vs Commissioner Of Income Tax, A.P on 15 April, 1980
The assessee preferred an appeal before the Commissioner of Income-tax (Appeals), Trivandrum (in short, "the CIT(A)"), who sustained the addition. The matter was taken in appeal before the Tribunal by the assessee. The Tribunal deleted the addition by holding that the income disclosed by the firm before the Settlement Commission was available to be utilised by the assessee. Reliance was placed on the decision of the apex court in Anantharam Veerasinghaiah and Co. v. CIT [1980] 123 ITR 457 to hold that funds siphoned off from the firm were available with the assessee for explaining the investments in his books for the previous year ending on March 31, 1989. The Revenue prayed for reference to this court,
which was rejected. But, pursuant to the direction given as indicated above, the questions as quoted above have been referred for opinion.