GANAPATI ISHWARAPPA BAGEWADI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS case has come to us by means of a reference under section 66(2) of the Indian Income-tax Act, 1922 (to be referred to hereinafter as the "Act"). The question referred for our opinion i :

(2.) THE order of the Tribunal whose correctness is assailed before us is found in I.T.A. No. 4017 of 1954-55 on the file of the Income-tax Appellate Tribunal, Bombay Bench "A". It is a common order in respect of the assessment for the years 1947-48, 1948-49, 1949-50, 1950-51 and 1951-52. THE order assessing the assessee to income-tax for the assessment year 1947-48 was made on March 29, 1952. THE orders relating to the income-tax for the other assessment year were made on March 25, 1953.

(3.) PECULIARLY enough, no party mentioned above has taken away the profit as earned for this particular year; the amounts are lying with the assessee only. Though in some cases the parties have come and admitted that it is their own business, the same cannot be accepted in the absence of corroborative proofs for the same. Moreover, psychologically as human nature is, one cannot expect a dalal to be satisfied only with 5% commission on the sales effected, when he could see under his nose that so many persons are earning exhorbitant margin of profit, and this is exactly the position. In these circumstances, I hold that these profits are earned by the assessee himself. However, I give some credit to these parties for having lent their names and allow 10% of the profit."