TaxTMI 
TaxTMI 
1967 (4) TMI 19
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....urga Narain Singh, had two sons, the appellant and his younger brother, Kanwar Devendra Narain Singh. The appellant was born in 1929, and attained the age of majority in 1947. Up to 1952, he was a student. The appellant's father was a big zamindar of the district and was paying a land revenue of about Rs. 2 lakhs a year. He enjoyed income from property, flour mill, hire of kothies, oil mill, money-lending and other sources. He died on September 2, 1944. The Income-tax Officer, for the year of assessment 1949-50, noticed that on November 3, 1947, Rs. 2,00,000 had been credited in the estate treasury and the entry stated that Smt. Rani Bahadur Sahiba had given Rs. 2 lakhs from the private money of the deceased Raja Saheb for deposit. The Inco....
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.... was the income of the accounting year relevant to the assessment year 1949-50. It observed on this point : "There can hardly be any doubt that the sum represented the revenue income of the year under consideration. The account year of the assessee started from 28th of September, 1947, and extended up to the 30th of September, 1948. The deposit appears on 3rd of November, 1947. The assessee is a man of great status. He is the Raja of an estate and owns considerable income from zamindari, sayar, money-lending, etc. He has been assessed in the past on considerably large amounts and his potential capacity to earn income is certainly great. The deposit appears in the account books of the assessee during the accounting period. The explanation....
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....nding that rupees two lakhs was the income from nazrana, etc., or from other undisclosed sources ?" The assessee then applied to the High Court under section 66(2) of the Income-tax Act, asking the same questions to be referred. The counsel pressed two points in support of the application before the High Court : "(1) Whether an amount of Rupees two lakhs included in the total income of the assessee as income from some undisclosed source was not assessable in the assessment year 1949-50 on the basis of the accounting year of the assessee from 1st October, 1947, to 30th September, 1948, but was assessable only in the assessment year 1948-49 with reference to the financial year 1st April, 1947, to 31st March, 1948 ? (2) Whether there ....
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....nsidered the question whether the income could be held to be the income of the relevant accounting year. This question was a wide question and included the aspect which is now being put in the forefront. It is true that the cases relied upon by Mr. Desai were not mentioned by the Appellate Tribunal but we are unable to agree with the learned counsel for the respondent that an aspect of a question cannot be the subject-matter of a reference, if that aspect is not considered by the Appellate Tribunal. We agree with the High Court that the second question pressed before it, namely, whether there was material for the finding that the said amount of rupees two lakhs was income of the assessee from some undisclosed source need not be stated by....