Shah J. - (1.) The High Court of Judicature at Madras recorded an answer in the affirmative on the following questions submitted by the Income-tax Appellate Tribunal :"Whether the reassessment under section 34 of the Act is valid in law -
(2.) With certificate granted by the High Court, the assessee has appealed to this court.
(3.) In proceedings for assessment of income-tax against one Ramnanthan Chettiar, the appellant, who will be called "the assessee", claimed that he had deposited Rs. 10,000 with Ramnathan Chettiar out of Rs. 16,000 brought by him when he returned to India from Malaya on March 21, 1946. The Income-tax Officer started proceedings against the assessee for assessment of tax under section 34 of the Income Tax Act for the assessment year 1947-48, and brought to tax Rs. 16,000 as income from undisclosed sources. In appeal, the Appellate Assistant Commissioner modified the order and held that Rs. 10,000 deposited with Ramnathan Chettiar alone were taxable in the year of assessment 1947-48. In the course of his order dated November 25, 1957, he observed : "If there was a sum of Rs. 6,000 it could only be treated as income arising in the previous year for the assessment year 1946-47 or as income remitted in that assessment year." ;