KISHINCHAND CHELLARAM Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) AT the instance of the assessee the following tow questions were initially referred by the Income -tax Tribunal for our determination :

(2.) THESE were the only two questions referred to by the Tribunal for the two assessement years even though in its application the assessee desired that for the assessment year 1951 -52, 13 questions ought to be referred to and for the assessment year 1952 -53, three more questions should be referred to. After the reference was filed in this court the assessee took out a notice of motion for directing additional questions to be raised by the Tribunal which it desire to raise. That motion was partly allowed by this court and the court directed the two additional questions to be referred to by the Tribunal and supplementary statement of case to be submitted. These two additional questions are as under :

(3.) MESSRS . Kishinchand Chellaram, the assessee, is a registered firm carrying on business in the manufacture of silk and silk goods with its head office at Bombay and with several branches in India and abroad. it appears from the balance -sheet and the profit and loss account filed by the firm for the relevant assessment years that it was its uniform practice to accept deposits from outsiders and utilise the sums so received for its won business and for the business of its sister concerns. It appears from the balance -sheet and profit and loss account of the head office as on April 2, 1951, that the total liabilities of the assessee aggregated to Rs. 92,27,618. Out of this, an aggregate sum of Rs. 21,22,872 was a capital contribution of three of its partners as under : Rs.Lachhmibai Seth Shewakram 6,62,281Seth Lokumal Seth Kishinchand 9,18,248Seth Murlidhar Seth Tahilram 5,42,343