1958 (9) TMI 3

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....e assessment year 1946-47, he found that the income chargeable was Rs. 27,500 and for the assessment year 1947-48, he held that it was Rs. 54,500. These amounts appear in the account books of a firm of which the appellant is a partner as credits from him. The appellant was asked to give an explanation as to how he came to possess these amounts. His explanation was in two parts. He firstly stated his father had made a profit of about Rs. 80,000 in the arrack business conducted by him, that he had this amount with him when he died which was in the year 1936, that prior to his death he entrusted this amount to the assessee's aunt, that she died in 1944, and before her death, she handed this amount over to the appellant. As regards the balance ....

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.... it was only the name of Thayappa that appeared, that the firm was registered under section 26A of the Indian Income-tax Act, and that in the application it was only the name of Thayappa that appeared as a partner. The Tribunal also points out that during this period of six years, there is no proof that Thayappa paid over to the assessee any share of the profits. It also referred to the fact that for all his trouble Thayappa was not remunerated. It rejected the evidence of Ediga Narasiah and Govindaswamy Mudaliar who were examined by the appellant in proof of this portion of the case. In the result it held that the case of the appellant with reference to the amount of Rs. 42,000 was also not established. Then it proceeded to observe : " A....

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.... the source and nature of certain amount of cash received during the accounting year, the Income-tax Officer is entitled to draw the inference that the receipts are of an assessable nature. The conclusion to which the Appellate Tribunal came appears to us to be amply warranted by the facts of the case. There is no ground for interfering with that finding, and these appeals are accordingly dismissed with costs. We must mention that against the order of the Tribunal the appellant applied for reference to the High Court under section 66(2) of the Indian Income-tax Act, and the learned Judges of the High Court dismissed that application. No appeal has been preferred against that at all. The present appeal is against the decision of the Tribun....