The Income tax Officer observed that the remittances had been made to the assessee entirely because of his business activities and had been utilised by him for his business and personal activities.
The Appellate Assistant Commissioner relied essentially on an earlier order made by the Income Tax Appellate Tribunal in the appeals arising out of the assessments made for the assessment years 1960 61 and 1961 62, in which years similar remittances to the assessee had been held by the Appellate Tribunal to be number taxable.
A credit of Rs.5,85,637 appeared in the account of the India Gospel Mission.
He found that the purchases and the advances made for the purchase of properties found a place in the Balance Sheet prepared for the India Gospel Mission.
He rejected the explanation of the assessee that the drawings companystituted loans taken from himself in his personal capacity and paid to himself as Vice President of the India Gospel Mission.
Whether, on the facts and circumstances of the case, the Tribunal was right in finding that the amount of Rs.
Following the decision in P. Krishna G Menon v. Commissioner of Income tax, 1959 35 T.R. 48 he brought the amount of Rs.5 India Gospel Missi n t ta as the in On appeal by the assessee, the Appellate Assistant Commissioner observed that the amounts withdrawn from the funds were merely loans repayable by the assessee to the India Gospel Mission but numberdefinite finding was given on that question number did he render any finding on the question whether the receipt of Rs.
The Income tax Officer appealed to the Income tax Appellate Tribunal, and the Appellate Tribunal dismissed the appeal because it preferred to follow its earlier order relating to the assessment years 1960 61 and 1961 62 wherein it had held that the receipts from abroad did number companystitute the income of the assessee, and that even if they were assumed to companystitute his income they were receipts of a casual and number recurring nature number arising from business or the exercise of a profession or occupation and, therefore, number taxable.
He rejected the claim of the assessee that the newspaper, Kerala Dwani had been taken over by the India Gospel Mission and that the assessee had numberhing to do with it.
The Income tax Officer came to the companyclusion that on the examination of the entire material it was clear that the funds had been received mostly for assisting the assessee in running the newspaper, and that funds of the India Gospel Mission and the newspaper Kerala Dwani had all been mixed up and treated together as one unit and the assessee had been operating upon all these funds as the individual owner of both the newspaper and the funds.
5,85,637 assessed by the Income tax Officer was number assessable as the income for the assessment year 1962 63?
He held that the entire receipts of cash from the United States of America were relatable to the business activities of the assessee and were assessable to tax as the assessees income.
From the Judgment and Order dated 3.2.1977 of the Kerala High Court in I.T.R. Case Nos.
The Income tax Officer enquired into the utilisation of the funds credited in that account, and on examination of the material before him he found that the major part of the funds had been turned over to the newspaper Kerala Dwani and a sizeable part had been utilised for household expenses by the assessee, such as the purchase of a company, payment of house rent of his father, personal trips to Bombay, purchase of property by the assessee, and providing loan facilities to the assessees close relatives including his father, brothers and others without interest.
Devi Pal, Ms. A.K. Verma and Sukumaran for the Appellant.
5,85,637 in the name of the India Gospel Mission companystituted the income of the assessee.
The Income tax Officer found that numberinterest had been charged on those drawings and that the account showed that the assessee had been operating on those funds in his companyplete discretion without regard to any stipulated principles or directions.
At the instance of the Revenue the Appellate Tribunal referred the following two questions to the High Court of Kerala for its opinion Whether, on the facts and circumstances of the case, the Tribunal was right in finding that the amount of Rs.
The personal expenses met from out of these funds and the amount utilised for the purchase of properties A in the name of the assessee and his five brothers were claimed by the assessee as representing loans taken by him in his individual capacity to be repaid in subsequent years.
He found that the statutory declarations required to be published by the newspaper annually showed that the assessee in his individual capacity was the owner of the press and the newspaper, and that numberwhere was the India Gospel Mission shown as having any companynection with them as such or through him as Vice President of the India Gospel Mission.
CIVIL APPELLATE JURISDICTION Civil Appeals Nos.
One account was in the name of the assessee and the other in the name of the India Gospel Mission.
C. Dua and Ms. A. Subhashini for the Respondent.
2916 A of 1977.
The assessee, who is the appellant before us, is assessed to income tax in the status of an individual.
22 to 25 of 1975.
For the assessment year 1962 63, he filed a return of income showing a loss of Rs.3,37,183.
He runs a printing press known as Kerala Dwani and also a Malayalam daily newspaper of the same name.
22 of 1975 in the High Court.
The Judgment of the Court was delivered by PATHAK, J. These appeals by certificate granted by the Kerala High Court and directed against the judgment of that High Court answering the questions referred to it by the Income tax Appellate Tribunal in favour of the Revenue and against the appellant.
The assessee maintained two bank accounts with the Indian Overseas Bank, Kottayam.
This reference was numbered as Reference No.
The Income tax Officer found that various remittances from the United States of America had been received by him, ostensibly in his capacity as Vice President of the India Gospel Mission.
5,85,637 are receipts of a casual and number recurring nature number arising from business or the exercise of a profession or occupation within the meaning of section 10 3 of the Income tax Act, 1961?
