COMMISSIONER OF INCOME TAX Vs. VENKATARAMAN G

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Madras Bench, under Section 256(1) of the Income-tax Act, 1961, has stated a case and referred the following questions of law, for the opinion of this court, arising out of its orders relating to the assessments for 1960-61 and 1961-62 of the assessee :

(2.) THE assessee is a Hindu undivided family represented by Shri G. Ven-kataraman, its karta. Prior to him, the elder brother of Shri G. Venka-tararnart, the late G. Rudrappan, was a director of Messrs. Vijayakumar Mills Ltd., a company in which the public are not substantially interested. THE family held substantial shares in the company. It was found that during the previous year relevant to the assessment year 1960-61, the late Rudrappan had drawn moneys to the extent of Rs. 5,90,705 from the company. When the company brought this to the notice of the karta, Shri G. Venkataraman, after the death of G. Rudrappan, by a letter dated November 19, 1960, the said Shri G. Venkataraman, by his letter dated November 28, 1960, accepted the liability of the estate to the extent of Rs. 4,50,000, after verification of the accounts of Sri Rudrappan.

(3.) THE above view of this court as to the meaning of the word "obtained" occurring in Section 2(6C)(iii) is binding on us and we do not see any justification for taking a different view. If so, as far as the present case is concerned, since the finding of the Appellate Assistant Commissioner and the Tribunal is that the amount in question was embezzled by the late Rudrappan, it cannot be said that the said amount was obtained by the said late Rudrappan from the company. It will, therefore, follow that on the face of it, Section 2(6C)(iii) will have no application whatever to the facts of the present case.