COMMISSIONER OF INCOME-TAX Vs. SIR PURSHOTTAMDAS THAKORDAS

JUDGEMENT

(1.) This is reference under Section 66 (2) of the Indian Income Tax, Act, XI of 1922 by the Commissioner of Income-Tax, Bombay Presidency, in the matter of the assessment of the income of Sir Purshottamdas Thakordaa, hereafter called the assessee In his return of income for the purposes of assessment for the year 1923-24, the assessee, while declaring his income from all sources, had made a note as under :- Besides this, I received during samvat Year 1978 Rs. 1,88,750 as remuneration for winding up the estate of Omar Sobhani which being an extraordinary source of income is not liable to taxation.

(2.) The Income-Tax Officer, however, did not exempt this item from assessment. Thereupon an appeal was lodged before the Assistant Commissioner of Income- Tax who held that this item was rightly taxed. Thereupon the assessee applied for a reference, and the Commissioner of Income-Tax has made this reference on the question raised with his opinion thereon.

(3.) It seems strange that in a reference of this kind, the Commissioner has not stated what was the profession, vocation or occupation of the assessee. But it has been admitted during the course of the argument that the assessee is a cotton merchant.