- (1.) This appeal is by Gouri Prasad Bagaria and others in respect of the assessment of their father, Hanuman Prasad Bagaria, who died after the grant of special leave to him by this court. It will be convenient to refer to Hanuman Prasad Bagaria as the assessee, and his legal representatives as the appellants. The appeal is directed against the Judgement and order of the High court of Calcutta dated 14.12.1955, in an income-tax reference under sec. 66(1) of the Indian Income-tax Act, 1922. The High court answered the question : " Whether, on the above facts and circumstances of this case, there was any material before the tribunal to hold that the assessee purchased gold in the year 1918 which he sold in the year under consideration and the sum of Rs. 72,523.00 represents the sale proceeds of such gold - in the negative.
(2.) The facts of the case are simple. For the assessment year 1944-45 corresponding to the financial year 1944-45 the Income-tax Office found a sum of Rs. 72,523.00 credited in the name of Ganesh Da Hanuman Prasad, father of the assessee. The assessee was called upon to explain the nature and source of this amount, and he stated that it represented the sale proceeds of gold purchased by him in 1918 in Bombay, that the gold was kept in the family chest, and that it was sold in the account year. The entry in the account books in the name of the assessee's father was explained as being in accordance with Marwari custom, the pass book of the assessee, there was a withdrawal of Rs. 1,00,000.00 after a few days, and the assessee explained that the amount was given away to Messrs. Biria Brothers for purchasing a colliery.
(3.) The Income-tax Officer did not accept this explanation, an treated this amount as income of the assessee from some undisclosed source. The order of the Income-tax Officer was confirmed by the Appeal late Assistant Commissioner. On further appeal to the tribunal, the explanation was accepted, and the amount was ordered to be excluded. The order of the tribunal is extremely brief, and may be quoted in extenso: " The only point pressed in this appeal is about the addition of a sum of Rs. 72,523.00 as the assessee's income from undisclosed sources. It is admitted that the assessee got this money by sale of gold but what is not admitted is that the assessee had gold with him since 1918 when, as the assessee says, he purchased it in Bombay when the metal was cheap. We have heard the parties at some length and examined the personal history of the appellant. On the whole, the impression left in our minds is that his explanation has the ring of truth. We accept it and exclude the sum of Rs. 72,523.00 from the assessment.";