KURELLA PULLAYYA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS reference under S. 66(2) of the Indian IT Act raises the questions :

(2.) THE facts relevant to these questions are these : The assessee is one Kurella Pullayya, a businessman of Masulipatam, Krishna District. The assessments relate to asst. years 1943 44 to 1948 49. The assessments have been made by the ITO, Masulipatam Circle, under S. 13, proviso, of the Indian IT Act in respect of the income relating to the business of money lending which the ITO found as belonging to him, though he carried on the said business in the name of his wife, Srimathi Chandramathi. The assessee contended that he had nothing to do with the said business, that it was his wife's own, that the income was hers and that she alone should be assessed. This contention was rejected by the ITO. On appeal, the AAC confirmed the finding of the ITO and the assessment orders, with certain modifications. The Tribunal agreed with the AAC, rejected the contention of the assessee and has submitted the case and the question involved as set out supra.

(3.) WE consider that the Tribunal is right to finding that the nucleus of Rs. 14,703 belonged to the assessee himself for these reasons. The said amount is comprised of three main items :