K SIMRATHMULL Vs. ADDL INCOME-TAX OFFICER OOTACAMUND

JUDGEMENT

(1.) THIS is a petition for the issue of a writ prohibiting the Additional Income-tax officer, Ootacamund, from continuing certain proceedings which he initiated by means of a notice issued under Section 34 of the Income-tax Act dated 6-2-1957, and numbered as 86-S/45-46.

(2.) THE petitioner is an assesses on the file of the Additional Income-tax Officer, ootacamund in G. I. No. 86-s. On 18-12-1946, the Income-tax Officer assessed the petitioner on a total income of Rs. 5143, under Section 23 (3) of the Act. Subsequently, on 31-3-1956, the Income-tax Officer re-assessed him on a total income of Rs. 39,568. In this amount was Included a sum of Rs. 31,000, which the assesses alleged he had taken on loan from Messrs. Mangilal Inderchand, a firm carrying on business in Rajasthan, but which the Income-tax Officer held was income from undisclosed sources.

(3.) THE petitioner appealed to the Appellate Assistant Commissioner, Coimbatcre, and raised various contentions. One point that he took was that the Income-tax officer had not judicially considered the evidence which he had tendered to show that the sum of Rs. 31,000 really represented a loan that he had taken from messrs. Mangilal Inderchand. Alternatively he contended that in any event the entire sum of Rs. 31,000 would not come in for assessment for the assessment year 1946-47 as his previous year relevant for the assessment year 1946-47 ended on 5-11-1945, and, it has been held that for assessing the income from other sources the previous year to be adopted is the financial year unless the assessee has any other previous year in respect of the same.