KISHINCHAND CHELLARAM Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE assessee at whose instance this reference was called for under section 66 (2) of the Indian Income-tax Act, 1922, is a firm known as Messrs. Kishinchand Chellaram carrying on business at Gazdar House, Dhobi Talao, Bombay. We are concerned with the assessment year 1947-48, the relevant previous year being the year ending 6th April, 1947. The question which has been posed for our decision is as follows :

(2.) THE question relates to an amount of Rs. 1,07,350 which was remitted by telegraphic transfer from Madras to Bombay on 15th October, 1946, and was received at Bombay on 16th October, 1946.

(3.) MESSRS. Kishinchand Chellaram were assessed under section 23 of the Indian Income-tax Act and their assessment completed for the year in question on 30th June, 1951. They were assessed on an income of Rs. 26,43,573. Some time in 1955, however, the Income-tax Officer received certain information and commenced to make enquiries regarding the amount of Rs. 1,07,350. He wrote to the manager of the Punjab National Bank, Kalbadevi Branch, Bombay, asking for particulars of the remittance which had been received through that branch at Bombay. That letter is not on the record, but the bank manager's reply dated 18th February, 1955, has been reproduced verbatim in paragraph 2 of the statement of the case from a quotation thereof in paragraph 3 of the order of the Appellate Assistant Commissioner. The letter was as follows :