ARJAN DASS Vs. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) LATE Dr. Munshi Ram Gupta of Rohtak died on May 29, 1954, leaving an estate valued by the Assistant Controller of Estate Duty at Rs. 31,287. The Assistant Controller issued a "no DUTY PAYABLE " certificate on April 29, 1960. In the year 1956, that is, two years after the death of Dr. Munshi Ram, the Income-tax Officer, Rohtak, made some enquiry about a deposit of Rs. 4,00,000 made in the name of Dr. Munshi Ram in the Hindustan Commercial Bank, Jaipur, on November 8, 1947. In that enquiry Arjan Dass, son of Dr. Munshi Ram, produced two letters dated November 8, 1947, and April 2, 1949, said to have been written by one Makhan Lal to Dr. Munshi Ram. These letters suggest that the amount really belonged to Makhan Lal and that Dr. Munshi Ram was no more than a name-lender. The letters were as follows : Bombay 8-11-47 My dear Munshi Ram, We arrived here safely and had a pleasant journey. As mentioned to you at Rohtak, I have since deposited Rs. 4,00,000 (Rupees four lakhs) in the Hindustan Commercial Bank Ltd. , Jaipur, in your name. I am writing this to you for your information so that you may be in a position to furnish the necessary reply to any reference that may hereafter be made to you in this behalf. We are looking forward to the fulfilment of your promise to visit Bombay this month. Please bring Arjan also with you. Yours sincerely, Makhan Lal. Dr. Munshi Ram Gupta, Rohtak. AND Bombay

(2.) -4-49 My dear Munshi Ram, Just a line to inform you that Rs. four lakhs which I had deposited in the fixed deposit account with the Hindustan Commercial Bank Ltd. , Jaipur, in November, 1947, in your name have been duly received back by me with interest thereon. Hope you are quite fit. Yours sincerely, Makhan Lal. Dr. Munshi Ram Gupta, Rohtak. Makhan Lal, the author of the letters, was the Managing Director of Delhi Land and Finance Housing and Construction Company Private Ltd. It appears that at the relevant time Makhan Lal had extensive speculation business and was known as the " Silver King " of Bombay. The revenue started proceedings for reopening the assessments of Makhan Lal as well as Delhi Land and Finance Housing and Construction Company Private Ltd. The proceeding against the company was quashed by the Delhi High Court in a writ application. The fate of the proceedings against Makhan Lal is not known but one may assume that it yielded no fruit to the revenue.

(3.) THE appeal against the order under Section 146 was dismissed on the ground that the appeal against the assessment had been allowed and it was, therefore, unnecessary to go into the merits of the appeal against the order under Section 146.