JIWANRAM SHEODUTTRAI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) At the instance of the assessee, the following two questions of law have been referred to this court for the assessment years 1963-64, 1964-65 and 1965-66 under Section 256(2) of the Income-tax Act, 1961 : "1. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in admitting a new ground for the first time before the Tribunal, namely, the question of benami with regard to the share income of Smt. Savitri Debi and Deepak Prakash ?

(2.) Whether, the finding of the Tribunal that the wife and son of Sri Satyanarain Prasad were really representing the Hindu undivided family and 52 per cent. of the business profits of Messrs. J.S. Distributors was to be added to the income of the assessee is based on any evidence and/ or material and/or partly on irrelevant materials and partly on its failure to consider the relevant materials and/or based on mere conjecture or surmise and perverse ?" The facts relating to this reference are that the assessee is a Hindu undivided family carrying on business with its head office in Calcutta and a branch office at Varanasi. The assessment years are 1963-64 to 1965-66 and the relevant accounting years ended on Diwali 1962 to 1964, respectively.

(3.) In the case of Messrs. J.S. Distributors, right from the assessment year 1962-63, the Income-tax Officer refused to grant registration under Section 185 of the Act on the ground that the said partnership firm was not a genuine entity. In appeals preferred by the said firm before the Appellate Assistant Commissioner in respect of the assessment years 1962-63 to 1967-68, the Appellate Assistant Commissioner held that the said firm was a genuine firm and it should have been granted registration under Section 185 of the Act. Aggrieved by the order of the Appellate Assistant Commissioner, the Revenue preferred appeals before the Tribunal in respect of those years and the Tribunal in its consolidated order dated September 21, 1973, upheld the action of the Appellate Assistant Commissioner.