TaxTMI 
TaxTMI 
1964 (9) TMI 1
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....sections 147(1) and 142 of the Act for the assessment year 1958-59. The facts leading up to this petition are these. The petitioner was one of the partners of the firm which carried on business of brick manufacturers in the name and style of Messrs. Krishna Brick Field, Sulem Sarai, Allahabad. The petitioner had an as. 0-7-0 share in the profits of the aforesaid firm in the relevant year of account. Two amounts of Rs. 6,380 and Rs. 5,936 were found credited in the books of the firm in the personal account of the petitioner on the 22nd February, 1957, and on the 1st of November, 1957, respectively. The firm closed its accounts on the 31st October each year and accordingly the two amounts mentioned in the preceding paragraph fell within the ....
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....the sale of ornaments to Shri Jagannath Seth, Allahabad. The assessee's explanation was disbelieved and the sum of Rs. 6,380N was brought to assessment in the assessment year 1958-59. Before, however, the sum of Rs. 5,936 could similarly be brought to the assessment year 1959-60, the appeal for 1958-59 had been heard by the Appellate Assistant Commissioner who considered that, as this income was treated as income from an undisclosed source, it fell to be assessed on the basis of the financial year and not on the basis of the assessee's previous year. A direction was, therefore, given in respect of the sum of Rs. 6,380 that it be assessed for the assessment year 1957-58. In respect of the sum of Rs. 5,936, which was also income from an undi....
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....awn from those facts was a matter for the Income-tax Officer. In that case, the assessee-company had been representing that the sales of shares were casual transactions and were in the nature of a mere change of investment ; but the Income-tax Officer had discovered that the company was in fact carrying on a business of selling shares contrary to its earlier representations. It was held that it was the duty of the assessee-company only to disclose all the facts which had a bearing on the question, but whether the assessee had the intention to make a business profit as distinct from the intention to change the form of the investments was really an inference to be drawn from the material facts taken in conjunction with the surrounding circums....
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....r itself in respect of the original assessment for the assessment year 1958-59, disclosed the existence of the said credit together with the receipts alleged to be from the sale of ornaments and there was nothing else which the petitioner could reasonably have been expected to disclose. The Income-tax Officer, after drawing the inference that this was income from an undisclosed source, fell into the error of law in thinking that it was assessable in the assessment year relating to the previous year of the petitioner, whereas according to the settled law, as it then stood, the income from an undisclosed source stood to be assessed on the basis of the financial year. In the instant case, the impugned sum of Rs. 5,396 was found credited in th....