ANNAMALAI REDDIAR Vs. COMMISSIONER OF INCOME TAX, KERALA
HIGH COURT OF KERALA
COMMISSIONER OF INCOME TAX, KERALA
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M.S. Menon, C.J. -
(1.)THIS is a reference by the Income Tax Appellate Tribunal, Madras Bench, under section 66(2) of the Indian Income Tax Act, 1922. The assessment year with which we are concerned is 1954 -55 and the accounting period, the Malayalam year 1128 (August 17, 1952, to August 16, 1953).
(2.)THE peak credit - on January 6, 1953 - in the anamath account of the assessee was Rs. 13,865. The Income Tax Officer rejected his explanation regarding the entries in that account and assessed the said sum as his income from other sources. The Appellate Assistant Commissioner agreed with the Income Tax Officer and confirmed the conclusion. The Appellate Tribunal treated the amount not as income from other sources but as income from the assessees business itself.
(3.)THE first and the second questions referred to us relate to the sum of Rs. 13,865 and read as follows:
(1) Whether the Tribunal was justified in law in coming to the conclusion that the sum of Rs. 13,865 being the peak credit in the anamath account on January 6, 1953, represents the undisclosed business income ? (2) If the sum of Rs. 13,865 referred to above is held to be income from other sources, whether the said sum, is taxable for the assessment year 1954 -55 ?
It is common ground that if the amount is treated as income from other sources it will not be taxable in the assessment year 1954 -55. The second question, therefore, has to be answered in the negative and against the department.
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