BALBHADRA CHAND MUNNALAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE assessee is a firm in which there were three partners Munna Lai (since dead) who was the financing partner holding a -/137 - share and Debi Dayal and Dwarka Nath working partners holding -/2/ - and -/1/ - respectively in the assessment year in question 1944 -45 the relevant accounting year being July, 1942 to July, 1943. In this relevant accounting year, there were found in the books of account of the firm two credits of the sums of Rs. 10,000/ - and 15,000/ - on 31 -12 -1942 and 11 -3 -1943 in the names of Smt. Shakuntala wife of Munna Lal and Behari Lal father -in -law of Munna Lal respectively. The Income -tax authorities called upon the assessee to explain the source of these deposits.

(2.) WHEN arguing this question before us, Mr. Pathak has drawn our attention to the finding given by the Income -tax Appellate Tribunal in the appellate order to the effect that these deposits of Rs. 10,000/ - and Rs. 15,000/ - appeared in the books of account of the assessee in the names of Smt. Shakuntala and Behari Lal. In fact, it was Munna Lal the financing partner who had arranged for these sums of money. The language used in the appellate order is that in the account year in question the assessee firm started another business styled as Gopalji Govindaji and Munna Lal being a -/13/ - share -holder had to arrange for major portion of the capital required for this business. After expressing this view, the Tribunal proceeded to examine the explanation which was given by the representative of the assessee at the time of hearing of the appeal with regard to the sources from which Munna Lal had provided this money.