MANGALCHAND GOBARDHAN DAS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is reference under Section 66(1) of the Income-tax Act from the Income-tax Appellate Tribunal, Calcutta Bench. Two questions of law have been referred to this Court by this reference.

(2.) THESE question arose under the following circumstances. The assessee is a Hindu undivided family firm known as Mangalchand Gobardhandas, Tinsukia. The firm was a dealer in vegetable ghee, ground-nut oil, coconut oil, spices, iron, pans, etc. In its return the firm disclosed a total turnover of Rs. 3,01,053. On this turnover a loss of Rs. 36,803 was shown. The year of assessment was 1946-47. It was conceded that the account books of the firm were defective and it was not possible to ascertain profits or losses of the firm accurately therefrom. The assessment had to be made on estimate. In consequence the turnover was estimated at Rs. 4 lakhs and by applying a flat rate of 6 1/4 per cent, profits were assessed at Rs. 61,803. This finding of the Income-tax Officer was upheld at the appellate stages and is not now in dispute.

(3.) THE Assistant Commissioner agreed with this finding. It was contended before him that a further opportunity be given to the assessee to prove the source from which the wife of the assessee got the sum of Rs. 40,000 which was in dispute. He declined to give this opportunity, observing that there was no point in giving any further chance to the assessee to produce evidence as he himself admitted that the family including Sreemati Narbadi Agarwalla had no further evidence to produce. He also referred to the amount of Sreemati Narbadi from which it was inferred that the sum of Rs. 40,000 received by encashment of 40 notes in the name of Sreemati Narbadi Agarwalla could not have been her property.