MUNSARAM MAUJIRAM Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE statement of the case given by the Income -tax Appellate Tribunal correctly presents the facts out of which the following question of law has been referred to:

(2.) THE facts may be stated in brief. The Assessee is a Hindu undivided family. It carries on business as a wholesale dealer in food grains, oil, etc. The assessment year (sic) 1949 -50 and the relevant accounting year is from 1.4.1948 to 31 -3 -1949. Originally the assessment was made on an income of Rs. 21,29'2/ - Later on, while going through the accounts of the Assessee, the' Income Tax Officer found that there was a credit of Rs. 31,00/ - on 21 -11 -1947 in the name of M/s. Noonkarandas Maturam of Raigarh. He accordingly started ,a proceeding under Section, 34 of the Income Tax Act, 1922. On re -assessment, the Income Tax Officer held that Rs. 31,000/ - was the concealed income of the Assessee and added, it to the assessment previously made. In appeal, the Appellate Assistant Commissioner held that the aforesaid sum of Rs. 31,000/ - did not fan in the accounting year in question, and as such was not assessable for the assessment year 1949 -50. He however gave a direction under Section 34, Sub -section (3), second proviso for taking into consideration the aforesaid amount for the assessment year 1948 -49. The appeal against that order before the Appellate Tribunal failed. The Income -tax Appellate Tribunal refused to make a reference. The Assessee accordingly filed an application in the High Court to call for a reference. The High Court framed the aforesaid question and asked for a reference.

(3.) ON the aforesaid decision, we are satisfied that the Appellate Assistant Commissioner and the Income -tax Appellate Tribunal were wrong in giving a direction I that the amount of Rs. 5,000/ -, should be added to the income of the year 1948 -49 as a concealed income.