COMMISSIONER OF INCOME TAX Vs. KHAN SAHEB ATA MD. KHAN

JUDGEMENT

(1.) The short question as to the true construction of Martial Law Regulation No. 48(iii) of 1958 is involved. Facts giving rise to this appeal may be set out as follows:

(2.) The Respondent migrated from India to Pakistan in 1948 and purchased a Tea Estate, known as "Khan Tea Estate" in Sylhet. He was assessed to income-tax in Pakistan. After Martial Law Regulation 43 had been promulgated, the Respondent wrote a letter on the 29th of December, 1958, to the Income Tax Officer, Sylhet, wherein he said that in the assessment order of the Income Tax Officer, Sylhet, of the 1st April, 1952, his capital, which he had brought from Shillong, India to Sylhet was shown as Rs. 5,00, 000/-only. He explained that he had been giving money from time to time to his wives and children who were in West Pakistan and East Pakistan and the sums with them grew over years from 1931, when he was married in West Pakistan, to a considerable sum of money. This was not included in his capital in East Pakistan. In a statement of assets and liabilities submitted by him on the 7th January, 1958, he had mentioned the same figure as his capital in East Pakistan as the one shown by the Income Tax Officer, Sylhet. Again, on the 19th August, 1958, he submitted another statement of assets and liabilities for the year ending 31st March, 1958, in which the position was the same. The amount shown as reserve with his wives and children was not included therein, which amounted to Rs. 1,30,000/-. The last paragraph of this letter may be produced: Now under the Martial Law Regulation, I submit sincerely and honestly that if the amount with my wives and children grown as reserve which I give below is declarable and taxable, it may be treated as deemed proper. The amount is Rs. 1,30,000/- (Rupees one lac thirty thousand) only.

(3.) In continuation of this letter, the Respondent wrote another letter, on 12th January, 1959, to the Income Tax Officer. He explained that the amount of Rs. 1,30,000/- in the possession of his wives and children, represented his earnings and savings in Shillong (India) since 1931 and was outside the business capital shown by Income Tax Officer, in his assessment order, income-tax had been paid on it already. He had no business in Pakistan before or after the Partition, except for the Tea Estate. The last sentence in this letter reads: "Under the circumstances noted above, my request is to read my declaration in the light shown above."