1966 (8) TMI 14

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....to state a case on the following question, viz., whether the inclusion of the entire interest credited in the account books of Cine Supplies Private Ltd., Bangalore, in the joint loan account of M/s. B. R. Patel, I. A. Patel and H. R. Patel in the assessments of the assessee is legal? The statement of the case discloses the following facts: The assessee is an individual and the assessment years a....

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.... sum of Rs. 1,50,000 from the said Budan Saheb, was indemnified by I. A. Patel and H. R. Patel, being the two sureties in respect of the said loan. It is in respect of this undertaking as surety that a sum of Rs. 1,50,000 which was standing in the assessee's account in the Cine Supplies Private Ltd., was transferred by the assessee, to the joint loan account of the assessee, I. A. Patel and H. R. ....

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....eceipt in the hands of the assessee attracted tax. In appeal, the Appellate Assistant Commissioner confirmed the Income-tax Officer's findings. At the stage of further appeal before the Income-tax Appellate Tribunal, for the first time it was contended that 1/3rd amount of interest on Rs. 1,50,000 was assessed on I. A. Patel and another 1/3rd on H. R. Patel. But the Tribunal rejected that contenti....

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....Officer found as a fact that there was in fact no primary liabilities of the other two persons, viz., I. A. Patel and H. R. Patel, and that the amount of Rs. 1,50,000 was not utilised in business. As long as that finding is there--there being no other evidence to the contra in this case--the assessee cannot successfully contend that this is a case of double taxation. The primary liability for paym....