1950 (9) TMI 22

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.... Hindu undivided family carrying on the business of dealing in cloth under the name and style of Messrs Laljimal Girdhar Das at Gorakhpur. They had business dealings with two firms, Dilsukh Rai Jai Dayal of Banares and Ganesh Narain Onkar Mal of Bombay. The accounts of the assessee, after having been assessed for the assessment year 1939-40, came up before the Income Tax Officer for purposes of assessment for the assessment year 1940-41. During these proceedings the Income Tax Officer found that a sum of ₹ 15,000 had been credited on Kuar Sudi 9, Samvat 1996 to the accounts of Naunidh Prasad, one of the members of the Hindu undivided family. The same amount had also been debited on the same day to the accounts of firm Dilsukh Rai Jai ....

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....ficer that this amount was brought in the accounts of the assessee for the first time on Kuar Sudi 5, Samvat 1995 when entries were made in the accounts of the Bombay and Banares firms and since adjustments had been made during the relevant previous year relating to the assessment year 1939-40, the assessee was liable to assessment over this amount in the year in question. The assessee appealed to the Appellate Assistant Commissioner of Income Tax and the Income Tax Appellate Tribunal but unsuccessfully. He then asked for a reference to this Court and the case has now been referred to us by the Tribunal. Of the two questions referred to us, we will first take up the second question. Within this question two points have been raised. The fir....