RATANCHAND DIPCHAND Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE Income Tax Appellate Tribunal, Bombay was directed by this Court to submit a statement of case under Section 66(2) of the Income-tax Act, 1922 on the following question:

(2.) THE assesses is a Hindu undivided family carrying on money-lending business and business in Kirana, gur, sugar, betel nuts, sweet oil, etc. THE accounts are maintained by him according to the Diwali year, the material previous year for the purpose of assessment year 1951-52 being 22-10-1949 to 9-11-1950. THE Income Tax Officer made the following four additions to his income viz. <FRM>JUDGEMENT_188_ITR38_1960Html1.htm</FRM>

(3.) THE next case is again of the Patna High Court viz. Ramcharitar Ram Harihar Prasad v. Commissioner of Income-Tax, Bihar and Orissa, 1953-23 ITR 301: (AIR 1954 Pat 143). In this case the income Tax Authorities held that the trading ac- count maintained by the assessee did not show his true profits and estimated that a sum of Rs. 15,644 should be added as profit to the amount shown in the books of account. THEy also held that a sum of Rs. 85,000 shown as cash credits in the personal accounts of the partners should be added to the income from business. Although in the question that was referred to the High Court the amount of Rs. 85,000 was described as income from undisclosed sources, it was found by their Lordships that there was no material whatever in the statement of the case to support the argument that the amount of Rs. 85,000 was income derived not from the business of the assessee but from some undisclosed sources.