MANSFIELD AND SONS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) In this reference under , the only question involved is whether the sum of Rs. 1,31,957 which was found by the Appellate Tribunal to be an income of the firm could be computed as the business income for the purpose of the Excess Profits Tax Act. The question is as follows:

(2.) Two appeals were preferred to the Appellate Tribunal, one in respect of income-tax and the other in respect of the excess profits tax. No separate argument was advanced in respect of the excess profits tax appeal and the assessee prayed for relief consequential to the result of the income-tax appeal.

(3.) The Appellate Tribunal went into the question as to how this amount of Rs. 1,31,957 should be treated. It observed that if the amount had come from the partners it was for them to explain the source of the same. It negatived the assessee's contention that the item could not be one of cash credit as no money came to the firm and as there was no attempt by the firm or its partners to explain the source from which the amount was received. The finding of the Appellate Tribunal on this portion of the case is as follows: