BHANJI BAGAWANDASS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS tax case is set before us on a remand of the case made by the Supreme Court in its order in Civil Appeal No. 1984 of 1966. We shall extract the relevant portions of the judgment of the Supreme Court in order to appreciate the scope of the order of remand. We shall be, therefore, quoting in extenso the necessary excerpts from the judgment which touches both questions of fact as well as law.

(2.) THE assessment year involved in this appeal is 1948-49, the corresponding previous year being the financial year 1947-48, For the accounting period from November 13, 1947, to November 1, 1948, which was the corresponding previous year for the assessment, year 1949-50, there was shown a credit of Rs. 25,000 in the capital account of the appellant. On November 13, 1947, this amount was credited in the books of the appellant. On October 30, 1948, this amount was transferred to the account of one Amrithlal Ranchoodas, the father-in-law of the appellant. THE Income-tax Officer included the said amount as income of the appellant from undisclosed sources in the assessment for the assessment year 1949-50, On appeal to the Appellate Assistant Commissioner, the appellant contended that the amount could not be included in the assessment year 1949-50 because the credit appeared prior to March 31, 1948.

(3.) FOR these reasons we allow this appeal, set aside the judgment of the High Court dated January 2, 1964, and remand the case to it for further hearing and answering the reference in the light of the Income-tax Amending Act, 1 of 1959."