MUNNALAL BIHARILAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is an application under S. 66 (2) of the Indian IT Act.

(2.) FACTS material for purposes of this case are as follows. The assessee is a HUF. It does business under two names, viz., Munnalal Pannalal and Pannalal Jamnaprasad. Under the former name business in clothe, speculation in gold and silver, and money - lending is conducted while under the latter name business in grain and kirana is conducted. The case relates to asst. year 1950 -51 corresponding to accounting year ending Diwali, 1949. The assessee filed a return showing a total income of Rs. 23,059 -7 -6. To this the ITO added Rs. 7,829 being the cash credit in the account of the Karta of the family which, according to him, was not properly explained, and a sum of Rs. 6,360 which, according to him, could not be allowed as a bad debt.

(3.) AN appeal was filed by the assessee against the order of the ITO before the AAC as also before the Tribunal, Bombay, but these appeals failed. The assessee then filed an application under S. 66 (1) of the Indian IT Act before the Tribunal, Bombay, requesting it to state the case to this Court. The following questions of law were raised by the assessee by that application :