1954 (9) TMI 41

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.... maintained his books of account for these businesses according to these accounting, years. The original assessment was made by the Income Tax Officer on a sum of Rs. 5117 as total income derived by the assessee from property and from business The Income Tax Officer later on discovered that on 21-1-1946 the assessee had encashed high denomination notes to the extent of Rs. 22,000. A proceeding under Section 34 was started against the assessee who was asked to explain the source of this amount. The assessee explained that the amount was a part of the cash balance of the business. This explanation was rejected and the Income Tax Officer assessed the whole amount of Rs. 22,000, as secreted profits of the assessee from the business. An appea....

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....47-48. It was pointed out by the learned counsel that for the mica business the assessee kept his account books according to the calender year 1946 and for the cloth and grain business the account books were kept according to Diwali year 2002-2003 Samwat, corresponding to the period from 19-11-1945 to 26-10-1946. In the course of assessment the assessee had intimated his option that the previous year should not be the financial year 1946-47 but should be the accounting year for the two businesses according to the books of account. The point taken by Mr. Tarkeshwar Prasad was that it was not open to the Tribunal to say that the secreted profits which the assessee had made from the businesses of mica and cloth and grain should not be asses....

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.... books of account for the two businesses of mica and cloth and grain. In the course of his argument Mr. R.J. Bahadur appearing on behalf of the assessee stressed the point that the "profitable deals" referred to by the Income tax Officer should be taken to be a distinct source of income within the meaning of Section 2 (11) of the Income Tax Act. We are unable to accept this argument as correct. The profitable deals were made by the assessee in the two businesses of mica and cloth and grain and merely because that these deals had not been disclosed by the assessee in his account books it cannot be said that they are a separate source of income within the meaning of Section 2 (11) of the Act. To adopt the language of Lord Atkin in the c....