LATA MANGESHKAR Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) HAVING heard counsel for the Department and the assessee we are satisfied that this rule must be discharged. We would state our reasons somewhat fully not only because the rule was argued at considerable length and because the name of a reputed singer is involved but because the name and reputation of a solicitor who has been disbelieved is involved.

(2.) THE assessee, Lata Mangeshkar, is a well -known playback singer and as such connected with the film world. On 23rd August, 1960, she purchased a flat in "Prabhu Kunj "at Peddar Road in Bombay for a sum of Rs. 45,000. She had another flat at Walkeshwar in Bombay, which she sold off on 12th October, 1960, to one Vasantrai Prabhudas Jobanputra. While enquiring into the purchase and sale the ITO found entries pertaining to a sum of Rs. 95,000 in the books of the assessee. A sum of Rs. 95,000 was alleged to have been borrowed by her on hundi loans. The ITO called upon her to explain these alleged loans. In answer to that requisition the assessee filed her account books. They appear at Exhibit "B "in which there appear entries of borrowings from as many as ten different persons said to be financiers or bankers of hundi loans.

(3.) AS regards the other loan of Rs. 50,000 the same was also raised by our client through her solicitors, the said Thakoredas & Co., on or about 10th January, 1961, that is to say, the amount was received by her from her solicitors directly and not from hundi brokers or financiers. This loan of Rs. 50,000 was repaid by our client on 7th October, 1961, by paying Rs. 20,000 from our client's own receipts and raising loans of Rs. 30,000 from M. M. Khandwala of Thana through her solicitors, M/s Thakoredas & Co. "