HUSSAIN BHAI Vs. COMMISSIONER OF INCOME TAX MADRAS

JUDGEMENT

(1.) This appeal by certificate granted by the Madras High Court under Section 66A (2) of the Indian income-tax Act. 1922, hereinafter referred to as the Act, is from the judgment of the Madras High Court in a reference made to it under Section 66(1) of the Act by the Income-tax Appellate Tribunal Madras Bench.

(2.) The Tribunal referred the following question:

(3.) The relevant facts may now be stated. For the assessment year 1948-49 (accounting year ending November 12, 1947) an assessment was made on Abdullabhai Fazalali in the status of an individual on September 10, 1948, on a total income of Rs. 9,102. The sources of income considered in the assessment were share income from the firm of S. A. Bhagat and Co., and property income. Subsequently, it came to light that Abdullabhai Fazalali had deposited Rs. 40,000.00 in cash on July 28, 1947 in the branch of the Bank of India, Ltd., at Palanpur, now in North Gujarat. Abdullabhai Fazalali died on August 1, 1954. Notice under Section 34 (1) (a) of the Act was served on February 9, 1957 on Hussainbhai Abdullabhai as legal heir and representative of the estate of the late Abdullabhai Fazalali. On March 9, 1957 a return was filed showing the income as Rs. 8,237/-, but in Column 'D' the sum of Rs.40,000/- aforesaid was mentioned.