PRANJIRANDAS S PATEL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE facts relating to this reference are as follows :

(2.) THE Appellate Tribunal found that the transaction was ab initio void, as held by several decisions of the Supreme Court and followed by the Tribunal in the cases of the assessee's brother. THE Appellate Tribunal also found that the claim of ratification was an afterthought, as demonstrated by the facts on record, that it would be reasonable to assess the actual interest earned on the amount which was lying as a deposit with a firm, and if such information was not available, to estimate the interest at a simple rate of interest instead of at a compound rate of interest. THE assessee required the Tribunal to state the following common questions of law :