KASI IYER Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This is a reference under S.8(5) of the Travancore Taxation on Income (Investigation Commission) Act, 1124, read with S.113 of the Travancore Income Tax Act, 1121, by the Commissioner of Income Tax for Mysore, Travancore Cochin and Coorg, Bangalore and the questions referred are:-

(2.) The assessee, Messrs. R.S.A.C. Kasi Iyer, is a registered firm of yarn merchants consisting of four partners and the assessment year concerned is the Malayalam year 1119, the accounting period being the year ended 31.12.1118. On a scrutiny of the firm's accounts and the materials available in respect of the accounting period the Government of Travancore Cochin were satisfied that there was a prima facie case of a substantial evasion of income tax by the assessee and referred the case for investigation and report to the Travancore Income Tax Investigation Commission under S.5 of the Travancore Taxation on Income (Investigation Commission) Act, 1124. Ext. A dated 6.8.1949 is the order of the Government in that behalf and Ext. F dated 1.2.1950 is the report of the Commission in which they said:-

(3.) The Government of Travancore Cochin accepted the report of the Commission and passed the following order, Ext. G, dated 14.12.1950: