THOMAKUTTY M O Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, acting under section 66(I) of the Indian Income-tax Act, has drawn up a statement of the case and has referred the following questions to this court :

(2.) THE Income-tax Officer, Kozhikode, made a best judgment assessment for the year 1948-49 on February 26, 1949, under the Indian income-tax Act, 1922 (hereinafter referred to as the Act), estimating the taxable income of the assessee as well as his foreign income for the purpose of fixing the rate of tax. THE assessee himself had only estimated his foreign income arising from the former Cochin State and mentioned the estimated figure of Rs. 40,000 in his return. THE officer did not accept that estimate and said :

(3.) BEFORE dealing with these arguments, it is necessary to state what was done at the time of the reassessment proceedings. The explanation offered by the assessee that Rs. 25,000 entered in the account books at Kozhikode on July 30, 1947, represented money that really belonged to his wife was not accepted and a addition of that amount was, Therefore, made to the total taxable income that had originally been estimated at Rs. 90,169 when the order of assessment dated February 6, 1949, was passed. For the purpose of fixing the rate, the foreign income which had been estimated at Rs. 50,000 by the assessment order dated February 6, 1949, was enhanced to Rs. 1,02,511.