MASH TRADING CO Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) A Division Bench of this Court has in view of the difference of opinion between various Courts including different Benches of this Court referred the first question which has been stated to the High Court for opinion. The question referred by the Income -tax Appellate Tribunal is :

(2.) IT arises in the following circumstances. Nanak Chand Malik was a Government servant. After retiring from Government service in June, 1946, he started a business in the name and style of Mash Trading Company for purchasing and selling of goods from the Disposals Department and from other sources. The previous year in the present case is from the 1st of July, 1946, to the 30th of June, 1947. He filed a return showing a profit of Rs. 6,184. It is claimed that the accounts were found to be correct and in order but three items stated to be from undisclosed sources were taken into the revenue account by the Income -tax Officer. The items were

(3.) SIMILARLY in regard to Rs. 5,000 the Assistant Commissioner accepted the explanation of the assessee and held that only Rs. 3,500 remained unexplained and he thus allowed a deduction of Rs. 1,500.