MAHENTH HARIHAR GIR Vs. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) THE assessee in this case is Mahanth Harihar Gir of Bodh Gaya. THE accounting year is 1354 fasli when ended in September 1947. For this accounting year, the assessee showed a return of income from money lending business to the extent of Rs. 1,934. THE total income shown in the return from all sources was Rs. 15,940. During the assessment proceeding, the Income-tax Officer held that the Toshakhana Bahi did not represent the correct account of the funds remaining in the Toshakhana. THE Income-tax Officer estimated that a sum of Rs. 25,000 should be added to the return as income from money lending business. THE Income-tax Officer also relied upon the judgment of the Appellate Tribunal for 1943-44 and 1945-46 assessments wherein the Appellate Tribunal made the observation that the assessee must have some independent account of the Toshakhana. For the accounting year, the opening balance of the Toshakhana account was Rs. 3,36,000 and a further sum of Rs. 2,45,000 was added to the Toshakhana from the Roznamcha. A sum of Rs. 32,000 was withdrawn from the Toshakhana during the year and the balance was a sum of Rs. 5,49,000. THE view taken by the Income-tax Officer was that this amount in the Toshakhana was not kept idle but must have been put to some remunerative purpose. An appeal was taken on behalf of the assessee to the Appellate Assistant Commissioner but the appeal was dismissed on the ground that the account books produced by the assessee for the Toshakhana and for Roznamcha were incomplete. THE assessee appealed to the Appellate Tribunal who affirmed the order of the Income-tax Officer and held that the amount of Rs. 25,000 was rightly added to the income of the assessee from money lending business.

(2.) IN these circumstances, the Appellate Tribunal has referred the following question of law for being : determined by the High Court : "Whether in the circumstances of the case there are materials to justify the adding up of Rs. 25000/- to the assessable income as money-lending income.?"