COMMISSIONER OF INCOME TAX Vs. SHEOLAL RAMLAL

JUDGEMENT

(1.) THIS is a reference under Section 66 (1) of the Income-tax Act by the Income-tax Appellate Tribunal, Bombay, for the determination of the following questions:

(2.) THE facts out of which this reference arises are as follows: THE assessee was being assessed on his income in the accounting year 1946-47. He was found to have encashed high denomination notes of the value of Rs. 66,000/-. He encashed notes of the value of Rs. 40,000 on 24-1-1946 and the remaining, viz., Rs. 26,000, on 25-1-1946. THE Income-tax Officer in dealing with these notes held them to be income from an undisclosed source. In giving his finding he observed as follows:

(3.) THE present reference was made at the instance of the Department, which contended inter alia that the order made by the Appellate Tribunal correcting the assessment year for Rs. 26,000 was incompetent in view of the fact that the previous order on the appeal became final under Sub-section (6) of Section 33 of the Income-tax Act and that this was not a matter within Sub-section (2) read with Sub-section (1) of Section 35. In making the reference the Appellate Tribunal stated that it did not purport to act under Section 35 of the Income-tax Act at all.