MULLA IRSHAD ALI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is an application under section 66(2) of the Indian Income -tax Act, 1922, for calling upon the Income -tax Department to state a case.

(2.) THE facts of the case are as follows : The applicant was assessed under section 25(3) of the Bhopal Income -tax Act of 1936 (VIII of 1936) on a total income of Rs. 2,363 by an order dated July 20, 1946. After the Indian Income -tax Act was applied to Bhopal, the case was reopened under section 34 of the Income -tax Act, inasmuch as it was found that the applicant had encashed 57 high denomination notes of Rs. 1,000 each on January 16, 1946. A notice was issued to him on March 28, 1951, under section 40 of the Bhopal Income -tax Act, 1936, but in order sheet section 34 of the Indian Income -tax Act was mentioned and Forms I.T. 90 and 11 were ordered to be used.

(3.) THE applicant went up in appeal before the Appellate Assistant Commissioner, Jabalpur. The appeal failed. The applicant then filed a second appeal before the Income -tax Appellate Tribunal, Bombay. The Tribunal dismissed the appeal on the ground that the supplemental proceedings were under the Bhopal Income -tax Act and that under that Act no second appeal lay. The Tribunal also held that there was no merit in the appeal.