N. Sanyal, Additional Solicitor General of India, N. Rajagopala Sastri and R. H. Dhebar, for the respondent.
J. Kolah, J. M. Thakar, Ramesh A. Shroff, J. B. Dadachanji, S. N. Andley and Rameshwar Nath, for the appellant.
Before the Income tax authorities, the dispute related to the question whether this amount of Rs.
April 25.
An application under s. 66 A 2 for a certificate was also dismissed and thereafter, the appellant applied for and obtained leave to appeal to this Court under Art.
The Judgment of the Court was delivered by VENKATARAMA AIYAR J. This is an appeal against the judgment of the High Court of Nagpur in a reference under s. 66 1 of the Indian Income tax Act, 1922, hereinafter referred to as the Act.
Thereupon, the appellant went to Bombay on December 3, 1944, and on the 4th, cancelled the power of attorney given to the agent, and by numberice dated December 6, 1944, called upon him to pay the amounts withdrawn by him.
Appeal by special leave from the judgment and order dated December 22, 1954, of the former Nagpur High Court in Misc.
149 of 1956.
The appellant is the sole proprietor of a firm called Bansilal Abirchand Kasturchand, which carries on business as money lenders, dealers in shares and bullion and companymission agents in Bombay, Calcutta and other places.
On November 25, 1944, the cashier of the firm sent a telegram to the appellant informing him of the true state of affairs.
28,000 was recovered from Chandratan and adjusted towards the decree and the balance of Rs.
2,30,636 4 0, and applied them in satisfaction of his personal debts incurred in speculative transactions.
During the relevant period, the agent of the firm at Bombay was one Chandratan, who held a power of attorney dated May 13, 1944, companyferring on him large powers of management including authority to operate on bank accounts.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
The agent replied on December 8, 1944, admitting the misappropriation of the amounts and pleading for mercy.
36 of 1954.
He is a resident of Bikaner, and manages the business at the several places through agents.
During the period, November 15, 1944, to November 23,1944, the agent withdrew from the firms bank account sums aggregating to Rs.
Civil Case No.
2,30,636 4 0 and that was decreed on February 20, 1945.
A sum of Rs.
On January 16,1945, the appellant filed a suit against him in the High Court of Bombay for recovery of Rs.
2,02,442 13 9 was written off at the end of the accounting year as irrecoverable.
