50,000 only.
46,620.
50,000 as against Rs.
Whether on the facts and circumstances of the case and the evidence on record, the Tribunal as justified in directing that the income under the head business for the assessment year 1953 54 be reduced to Rs.
In the year 1953 54 the respondents were an unregistered firm and the total income of the unregistered firm was liable to be taxed.
The Commissioner appeals with special leave.
The judgment of the Tribunal is number a reasoned decision on the questions arising before it it is cryptic and in parts obscure, and gives numbergrounds for its companyclusion.
45,600 40,887 Trading deficiency Palluruthy branch 1,000 Pavaratty branch 5,000 6,000 Unexplained cash Credits 50,620 Less set off Intangible addition for 1952 53 Rs.
50,000.
1,00,000 and divided equally between the two years.
The unexplained cash credits found by the Appellate Assistant Commissioner and accepted by the Tribunal were Rs.
The judgment again lends companyntenance to a method of assessment which the Indian Income tax Officer aggregated to Rs.
1,31,179 being Rs.
Appeal by special leave from the judgment and order dated August 2, 1965 of the Kerala High Court in Income tax Referred Case No.
40,887 as their income from business.
The Tribunal then observed that on the evidence on record these residuary items must remain unexplained.
74692 which amount was reduced by the Appellate Assistant Commissioner to Rs.
Whether on the facts and circumstances of the case and the evidence on record, the Tribunal was justified in directing that any portion of the cash credits be assessed to income tax in any year other than the assess ment year 1953 54 ?
6,000 21,000 29,620 Assessable for both the year 91,838 and observed The assessee has undertaken to file a voluntary return for assessment year 1952 53 on the basis of a total income of Rs.
74,692 as income from other sources and assessed the respondents as an unregistered firm.
38,420 and income from other sources to Rs.
15,000 Intangible addition for 1953 54 as above.
For reducing the cash credits by Rs.
The Appellate Assistant Commissioner in appeal reduced the income of the respondents from business to Rs.
The Income tax Officer discovered an aggregate amount of Rs.
6,000 against the cash credits.
At the instance of the Commissioner of Income tax, four questions were referred to the High Court of Kerala Whether it was number beyond the jurisdiction of the Appellate Tribunal to reopen the companycluded assessment for assessment year 1952 53 and to direct that the income should, be revised in that year at Rs.
For the assessment year 1952 53, the Tribunal recorded that the respondents had given an undertaking to file a voluntary return for assessment on the basis of total income of Rs.
46,620 had remained unexplained.
46,620.
28,820 and companyfirmed the finding that the source of the cash credits aggregating to Rs.
56,487 less Rs.
15,000 brought to tax as business income in the assessment in 1952 53 must have been entered in the books of account of the next year and that Rs.
The Income tax Officer accordingly brought to tax a total income of Rs.
It is companymon ground that the companyrect figure should be Rs.
21,000, and then proceeded to amalgamate the income for the two years and to divide it equally.
1,00,000 and apportioned in equal shares in the two years.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
For the assessment year 1953 54 the respondents returned Rs.
But the income of the two years was rounded off at Rs.
20 of 1964.
In second appeal the Tribunal reduced the income from business to Rs.
21,000 numberreasons have been given, and amalgamation of the income for the two years and apportionment is without authority of law.
50,620.
50,000 ?
87,838.
But the Tribunal observed that there were certain special features in the case which needed proper companysideration in determining the final assessment.
But the Tribunal thought that because in the assessment year 1952 53 the total income of Rs.
74,692 as cash credits which, in his view, were number satisfactorily explained by the respondents.
56,487 as income from business and Rs.
Sukumar Mitra and B. D. Sharma, for the appellant.
15,331 already fixed ?
The Tribunal then set out a companysolidated statement of account for two years Trade profits assessed for assessment Rs.
46,620.
In these circumstances, the total business income of the assessee for the year under appeal is reduced to Rs.
The Tribunal then aggregated the income for the assessment years 1952 53 and 1953 54 for the two years, which he rounded off at Rs.
Whether on the facts and circumstances of the case and evidence on record, the Tribunal was ,justified in finding that a portion of the cash credits were companyered by the intangible additions made in 1952 53 and 195354 assessment ?
15,331 was companyparatively small companypared to the income of the earlier years some of that years profits must have companye into the profits of the next year.
year 1952 53 15,331 Trade profits on the basis of books and without the estimates and additions impugned in this appeal Rs.
The total income of the two years on the basis adopted by the Tribunal was therefore Rs.
15,000 and Rs.
Counsel for the respondents suggested that the Tribunal was presumably of the view that Rs.
2459 of 1966.
6,000 called trading deficiency in the two branches was entered as cash credit.
15,331 inclusive of Rs.
15,000 being undisclosed income.
The High Court declined to answer questions 1 2 and answered questions 3 4 in the affirmative.
50,000.
74692 which amount was the Tribunal observed that the cash credits discovered by the Income tax Officer aggregated to Rs.
Swaminathan and R. Gopalakrishnan, for the respondent.
The Judgment of the Court was delivered by Shah, J. For the assessment year 1952 53 respondents M s. Manick Sons were assessed to tax in the status of a registered firm and their income was companyputed at Rs.
