C M KOTHARI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE two questions that are referred to this court under section 66(1) of the Income Tax Act, 1961were

(2.) THE expression "aforesaid" in question No. 2 has obviously no relation to the income referred to in question No. 1. It may not be necessary to set out the relevant facts to answer the second of the questions. THE law on the subject has been settled by the decision of the Supreme Court in Mrs. Bacha F. Guzdar v. Commissioner of Income-tax, and the question is answered in the negative and against the assessee

(3.) MRS. C. M. Kothari and MRS. D. C. Kothari paid the vendor by cheques they drew on their respective banking accounts The sale and payments were on October 24, 1947, but MRS. D. C. Kothari received Rs. 30, 000 only by November 13, 1947, and during that period the bank allowed her account to be overdrawn. In addition to the payments due to the vendor, the ladies had to reimburse C. M. Kothari and D. C. Kothari their shares of the advance of Rs. 5, 000 that had been paid to the vendor. On October 24, 1947, the date of the sale, MRS. C. M. Kothari paid the firm Rs. 1, 800 and MRS. D. C. Kothari Rs. 1, 600 which were credited in due course, Rs. 1, 800 to the personal account of C. M. Kothari and Rs. 1, 600 to that of D. C.Kothari. Thus MRS.C. M. Kothari had to pay Rs. 200 more than the other two purchasers, MRS. D. C. Kothari and H. C. Kothari