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PETITIONER: MESSRS MEHTA PARIKH & CO.
Vs.
RESPONDENT: THE COMMISSIONER OF INCOME-TAX,BOMBAY.
DATE OF JUDGMENT: 10/05/1956
BENCH: BHAGWATI, NATWARLAL H. BENCH: BHAGWATI, NATWARLAL H. DAS, SUDHI RANJAN (CJ) AIYYAR, T.L. VENKATARAMA
CITATION: 1956 AIR 554 1956 SCR 626
ACT: Income-tax-Income from undisclosed sources-Assessment Assessee’s explanation based on accounts supported by affidavits Accounts accepted as genuine and statements in affidavits not controverted-Finding based on no evidence- Inference from proved or admitted facts-If questions of law- Principle of interference Indian Income-tax Act (XI of 1922), ss. 62(2), 23(3), 26-A.
HEADNOTE: The appellants, a partnership firm assessed under ss. 23(3) and 26-A of the Income-tax Act, were called upon by the Income-tax Officer during the assessment year 1947-48 to explain how and when they came to possess 61 thonsand-rupee currency notes which they had encashed on the 18th January, 1946, after the promulgation of the High Denomination Bank Notes (Demonetisation) Ordinance of 1946, under which such notes ceased to be legal tender on the expiry of the 12th of January, 1946. The assessees produced their cash-book entries from the 20th December, 1946, to the 18th January, 1946, which were accepted as correct by the Income-tax Officer, who, however, made no further scrutiny of the ac...