MATHURADAS GOKULDAS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) AT the instance of the assessee three questions of law are referred to us for determination under s. 66(2) of the Indian IT Act, 1922. They are:

(2.) AS this reference is capable of being disposed of on a short point, namely, whether the sum of Rs. 1,38,000 as income from undisclosed sources can be assessed for the asst. year 1947 48 or not, it is unnecessary for us to go into the facts in detail. For the asst. year 1947 48, the relevant accounting year is the calendar year 1946. The ITO, upon scrutiny of the material before him, assessed the assessee to the total amount of Rs. 3,69,371 which included a sum of Rs. 1,38,000, being the amount of certain high denomination notes encashed by her, as income from undisclosed sources. The contention of Mr. Kolah, on behalf of the assessee, is that, so far as the sum of Rs. 1,38,000 being the income from undisclosed sources, is concerned, it cannot be assessed to the assessee for the asst. year 1947 48. His submission was that if at all this sum of Rs. 1,38,000 is income from undisclosed sources, then it accrued to the assessee during the accounting year April 1, 1945, to March 31, 1946, and it can be assessed to the assessee only in the asst. year 1946 47. His submission was that, on the facts admittedly on the record, no other view is possible in view of the decision of the Supreme Court on this point. Mr. Joshi, on the other hand, on behalf of the Revenue conteded that this aspect of the matter was never canvassed before any of the taxing authorities nor has it been raised by way of a specific question in the reference application. His argument is that a specific question ought to have been raised and without doing so it is not permissible to an assessee to urge such a contention.

(3.) THE first question which has been raised on behalf of the assessee is wide enough to include the aspect of the matter whether this sum could be assessed for the asst. year 1947 48 and no separate question need be raised in respect thereof. If on a settled point of law the assessee is able to point out that on the basis of the declaration made by her this income of Rs. 1,38,000 as income from undisclosed sources can only be assessed for the asst. year 1946 47 for which the accounting year is April 1, 1946, to March 31, 1947, then she is entitled to succeed in so far as question No. 1 is concerned. For deciding question No. 1 we have to consider whether there is evidence to support the finding of the Tribunal that the sum of Rs. 1,38,000 as income from undisclosed sources is the income liable to tax for the asst. year 1947 48. On settled position in law there can be no two answers to this question.