DIVEKAR P K Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) IN this reference, two questions stand referred to us:

(2.) WE may add that initially the Tribunal had not accepted the assessee's application to refer the said two questions, but the assessee thereafter preferred Income tax Application No. 32 of 1966 and on the said application an order was made in the assessee's favour and in pursuance of the said order dated August 23, 1967, the aforesaid two questions stand referred to us.

(3.) THE assessee before us is one P. K. Divekar (since deceased), and we are concerned with the asst. year 1947 48. The original assessment on the assessee for 1947 48 was made on March 19, 1952. It would appear from the statement of the case that the ITO subsequently came to know of an alleged purchase of Government Security for Rs. 3 lakhs by one P. G. Patankar, who was the assessee's father in law. These securities were purchased through the New Citizen Bank Ltd., Bombay, in September, 1946. In consequence of this knowledge, presumably, the ITO initiated the proceedings under S. 34 of the Indian IT Act, 1922, for reassessment, and by his reassessment order dated February 28, 1957, he treated the sum of Rs. 3 lakhs as concealed income of the assessee and assessed it under the head "Income from other sources".