COMMISSIONER OF INCOME TAX Vs. KARANDIKAR H R

JUDGEMENT

(1.) THE question which has been referred to us under s. 256(2) of the I. T. Act, 1961 (hereinafter referred to as 'the Act'), is as follows : 'Whether there was any evidence in support of the Tribunal's finding that the high denomination notes did not belong to the three assessees, Karandikar, Phatak and Desai and in support of the finding that they belonged to outside parties ?'

(2.) THIS reference arises out of the assessment proceedings for the year 1946 -47, in relation to the assessment under the Act made on the three assessees, Karandikar, Phatak and Desai. Their income as originally assessed was Rs. 28,162, Rs. 19,141 and Rs. 22,432, respectively. All these three assessments were, however, reopened under s. 34 (1) (a) of the Indian I. T. Act, 1922, and in reassessment proceedings certain amounts were added as undisclosed income of the three assessees as follows : Rs.(1) H. R. Karandikar 2,92,000(2) D. B. Phatak 2,39,000(3) M. G. Desai 4,24,000

(3.) THE assessee, Phatak, was a partner in a firm called Pioneer Dyeing House, Poona, which is engaged in the business of dyeing yarn and cloth, and selling it after dyeing and printing. He also held shares in the Laxmi Textile Mills Limited of the value of Rs. 5,000, and he was also a director of the Bhor Mercantile Agency Limited. He was also a director of the Raja Raghunathrao Mills Limited, a textile mill at Bhor, where only weaving operations were carried on.