- (1.) This is a reference under Section 66(1) of the Indian Income-tax Act, 1922. The relevant year of assessment is 1946-47. The corresponding year of account is the year 1352 B.S., i.e., from April 14, 1945, to April 13, 1946. The Applicant is a Hindu undivided family which during the material time consisted of (1) Hem Chandra Kar, (2) Jyotirindra Nath Kar, (3) Atul Chandra Kar, (4) Narendra Nath Kar, (5) Bishnu Ram Kar and (6) Benode Behari Kar. Hemchandra, Jyotirindra, Atul and Narendra are brothers. Benode and Bishnu are the sons of two of their deceased brothers Kedarnath and Rajendra.
(2.) In the original assessment, the Income-tax Officer determined the Applicant's total income at Rs. 35,741 accruing from business and other sources, such as sale proceeds of forest produce, fisheries etc Subsequently, upon the demonetisation of high (sic) notes in January, 1946, the Assessee family encashed such notes of the value of Rs. 19,000 and five of the members, of the total value of Rs. 1,10,000. The amount encashed by each of them is as follows: JUDGEMENT_21_LAWS(CAL)2_1964_1.html
(3.) When these facts came to light, the Income-tax Officer reopened the assessment both of the Hindu undivided family and of the five individual members for the assessment year 194647. In the re-assessment of the Hindu undivided family, the Income-tax Officer included Rs. 19,000 in its total income. And the amounts noted above which had been separately encashed by the five members, were included in the re-assessment of their respective total income.;