KEVALDAS RANCHHODDDAS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE following question has been referred for our decision under section 66 (1) of the Indian Income-tax Act :

(2.) THE assessee is the karta of a Hindu undivided family and in the assessment year 1948-49, corresponding to the account year Samvat 2003, he was assessed under section 23 on 16th June, 1952, in respect of his income from the business of speculation which he carried on both at Bombay and at Indore among other businesses. Later, the Income-tax Officer came to know that the assessee had suppressed speculation profits to the extent of about Rs. 30,000. He, therefore, issued a notice against the assessee under section 34 (1) (a) of the Indian Income-tax Act. At that stage the assessee himself disclosed new figures as to his receipts from the speculation business as also of his payments made in the speculation business. The figures as given at the time of the original assessment and as given by the assessee at the time of the reassessment proceedings under section 34 were as follows :<FRM>JUDGEMENT_17_TLMHH0_1967Html1.htm</FRM>

(3.) IT will thus be noticed that the assessee himself showed at the time of the proceedings under section 34 that his receipts from the speculation business were larger by the sum of Rs. 31,149. At the same time, he claimed that his payments were larger by the sum of Rs. 85,510. He explained this difference in the figures of payments made as furnished at the time of the original assessment and as furnished at the time of the proceedings under section 34 by saying that the difference of Rs. 85,510 was accounted for under two heads :<FRM>JUDGEMENT_17_TLMHH0_1967Html2.htm</FRM>