- (1.) THIS is an application under Section 66 (2) of the Indian Income-tax Act, 1922, hereinafter referred to as the Act, asking this Court to require the Income-tax appellate Tribunal, hereinafter referred to as the Tribunal, to state the case and refer for the decision of this Court the questions specified hereunder : (1) Whether the grounds of decision of a criminal Court are admissible evidence in Income-tax proceedings ? (2) Whether the reasons of decisions of criminal Courts are conclusive evidence against the assessee in Income-tax proceedings ? (3) If the first two questions are answered in favour of the assessee, was there any evidence or was the evidence legally sufficient for the Tribunal to hold that the wrong totals in the assessee's cash book resulting in the shortage of Rs. 16,000/-was done in this case at the instance of the partners of the assessee ? (4) Did the wrong totals in any way affect or were likely to affect the incidence of income-tax ? (5) Was the law of onus in regard to cash credits correctly laid down by the Tribunal in deciding this case and whether on the evidence produced by the assessee in this case, the primary onus of proving the genuineness of the credits in the various accounts challenged in the Income-tax proceedings had been legally discharged by the assessee ? (6) Whether on the facts and evidence adduced in the case an inference against the genuineness of the credits could be legally drawn ? (7) Whether the Tribunal in appeal did make a new case for the Department and whether on the evidence it could be held that the assessee made any additional income on the sale of Rs. 1,50,000/- from cloth business during the account year ? (8) Whether there was any evidence from which an inference of negligence on the part of the assessee in regard to the embezzlement of Rs. 16,000/- could legally be drawn ?
(2.) BRIEFLY summarised, the material facts are these. For the assessment year 1945-46 the assessee declared the net assessable income at Rs. 16,373/ -. The profits for the relevant account period were declared to be Rs. 32,373/-, but the assessee claimed a deduction of Rs. 16,000 on account of loss suffered by the assessee by reason of the embezzlement of that amount by Sedh mal Cashier, an employee of the assessee. The Income-tax Officer did not accept the accounts of the assessee and made the following additions: "1. Unexplained cash credits Rs. 55,000/-2. Unexplained cash credits in the account of Mani Ram and interest of Rs. 2,029 credited to this account Rs. 23,229/-
(3.) DIFFERENCE in totals stated by the assessee to be due to defalcation by Sedh Mal Munib Rs. 16,000/-;