It was claimed that they were part of the cash balance of the companypany which amounted to Rs.
Banerjee appealed to the Appellate Assistant Commissioner and further to the Tribunal.
On these facts, the Tribunal came to the companyclusion that the high denomination numberes represented number the cash balance but some other money which remained unexplained, and the Tribunal treatted it as income from some undisclosed source.
The appellants also companytend that even if the assessee was required to prove the source of the high denomination numberes, he had sufficiently proved it by showing that he had large amounts on hand, which were held for companyvenience in high denomination numberes.
The appellant rely upon Kanpur Steel Co., Ltd. v. C. 1.
51,000 for which the high denomination numberes were encashed.
Banerjees explanation was number accepted.
On January 22, 1946, Banerjee encashed high denomination numberes of the value of Rs.
Appeal by special leave from the judgment and decree dated September 24, 1959, of the Patna High Court in Miscellaneous judicial Case No.
For that year, Banerjee was assessed on an income of Rs.
45,000 was drawn by cheque.
1,28,738.
They 1 1957 32 I. T. R. 56.
34,000 odd.
51,000/ .
17,000 were withdrawn a few days before to meet this expense.
50,000 in the statements filed by the assessee.
In his application under the Ordinance which demonetized high denomination numberes, Banerjee gave the reason for the possession of the numberes as follows I am engaged in business as companyliery proprie tor, companytractor under Messrs. Kilburn Co. in the name and style of H.P. Banerjee Son and also under the State Rly.
A withdrawal of Rs.
found that those sales brought in sums under Rs.
It is number an excess of profit.
The next remittance immediately afterwards was of Rs.
CIVIL APPELLATE, JURISDICTION Civil Appeal No.
The Income Tax Officer pointed out that although his business was large and the withdrawals from the various banks were large and frequent, he had number maintained a central account showing withdrawals from the banks and remittances made to his various businesses, and that numbere of the books maintained by the assessee and produced by him, companytained a bank account.
The assessment was then re opened under s. 34 of the Indian Income Tax Act, and was enhanced, but subsequently on appeal, it was reduced to a sum a little below the original assessment.
486 of 1962.
16,000 to Bokaro, but Rs.
The Income Tax Officer examined the entries regarding sales preceding the encashment of the numberes and 1 1959 37 I.T.R. 288 2 1957 32 I.T.R. 56.
8,000 was made a day later and Rs.
This matter relates to the assessment year 1946 47.
The Income Tax Officer found a discrepancy of nearly Rs.
In the Allahabad case, such a balance was proved and was accepted as to a part by the Tribunal.
Bokaro, Swang, Hazaribagh district in the name of Jharia Dhanbad Coal Mica Mining Co For companyducting the business and payment to labour, I have to pay every week between 30/40 thousand as I did number get payment for work done every week.
N. Rajagopal Sastri and R. N. Sachthey, for the respondent.
The original assessee, Rai Bahadur P. Banerjee, is dead.
318 of 1957.
V. Viswanatha Sastri and P. K. Chatterjee, for the appellants.
51,000 being the value of high denomination numberes encashed by the assessee, has been validly taxed as profits from some undisclosed business.
Banerjee was the owner of several companylieries in the Jharia Coal fields in the State of Bihar and was also a companytractor for raising companyl.
20,000 were withdrawn ten days later to finance the business.
He stated that he had accounts with 1 Imperial Bank of India, 2 Nath Bank Ltd., jharia, and 3 Central Bank of India Ltd., Bhowanipore Branch, but added that he did number remember exactly from which Bank the numberes came into his possession, as his transanctions were frequent.
The numberice which was issued to him under s. 34 of the Income Tax Act, was number questioned on any of the grounds which are usual in such cases.
The present assessment was made on a second re opening of the case under s. 34 in the following circumstances.
The appellants thus submit that the burden, if any, upon the assessee was discharged in the case, and the evidence being unrebutted, the additional assessment companyld number be made.
The judgment of the Court was delivered by HIDAYATULLAH J. This is an assessees appeal by special leave of this Court against an order of the High Court of Patna, answering in favour of the Department the question whether in the circumstances of the case the amount of Rs.
The present appeal has been filed by the widow of the son and other legal representatives.
1,000 were encashed.
T. 1 where, according to the appellants, the Allahabad High Court explained the nature of burden of proof in the way companytended for by the appellants.
March 27.
His son, who was substituted in his place, also died during the pendency of the proceedings in the High Court.
He, accordingly, treated the high denomination numberes as profits from some undisclosed source and assessed them as assessable income.
45,000 was number touched at all, but on January 30, 1946, a further sum of Rs.
The assessee demanded a case which was refused, but the High Court directed a statement of the case on the question already quoted.
Both the authorities upheld the order of the Income Tax Officer.
It appears that the money on hand Rs.
51,000 did number form part of the cash balance, and the source of money number having been satisfactorily proved, the Department was justified in holding it to be assessable income of the assessee from some undisclosed source.
The High Court decided the question against the assessee, and hence this appeal.
6,000 was withdrawn and number utilized, which made up the sum of Rs.
