TMI Blog1970 (1) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 (11 of 1922) (hereinafter called " the Act "), may first be narrated : " Whether, on the facts and in the circumstances of the case, the income from dividend amounting to rupees one lakh (net) was liable to be included in the assessee's total income for the assessment year 1953-54 ? " Messrs. Patiala Sales Corporation Private Ltd., Rajpura (since dissolved), hereinafter called the assessee, showed in their books of account relating to the assessment year 1954-55, a net income of rupees one lakh (coming to Rs. 1,35,573 on being grossed up) on account of dividend received by them from Messrs. Cement Distributors Ltd., declared by the said company at its general meeting held on October 29, 1952. In the income-tax return filed by the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... intained accounts for the year ending August 31, 1953, in respect of this dividend income, the assessment year for which was 1954-55. As such the assessment on the same income in the year 1953-54 is not justified. " On the basis of the above-quoted finding of fact, the assessee's appeal was accepted, and the order under section 34 in respect of the assessments year 1953-54 was set aside leaving it open to the Income-tax Officer to take proper action for assessing the income in question in the assessment year 1954-55. On further appeal by the Income-tax Officer to the Income-tax Appellate Tribunal, the finding of fact recorded by the Appellate Assistant Commissioner was confirmed in the following words : " As the respondent-company admit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ision unless he maintained separate books of account for the separate source of income in respect of which he wanted to exercise the option. That argument, which was not accepted by the Tribunal, was again sought to be pressed before us by Mr. D. N. Awasthy. When, however, my lord the Chief Justice asked Mr. Awasthy to point out the provision of law which required the maintenance of separate books of account for each separate source of income in order to entitle the assessee to exercise the option in question, Mr. Awasthy could not press the point any further, and contended himself by submitting that the only requirement of law for enabling an assessee to exercise the option in question is that the income from a separate source must be acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of fact was not disturbed by the Tribunal, and was in fact affirmed by the Tribunal in somewhat different language. It is not open to the revenue to make any submissions on an assumed state of affairs contrary to the findings of fact mentioned above, by which the revenue is bound as much as the assessee. None of the following cases to which Mr. Awasthy referred is relevant for deciding the question before us : Sobhag Mal Lodha v. Commissioner of Income-tax, Bhailal Tribhovandas Co. v. Commissioner of Income-tax, Baladin Ram v. Commissioner of Income-tax and Bishan Dutt v. Commissioner of Income-tax. In Sobhag Mal Lodha's case, a Division Bench of the Allahabad High Court held that within the same head of income, there can be various s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case, decided by the Supreme Court, and Bishan Dutt's case, decided earlier by the Allahabad High Court and referred to by the Supreme Court in the judgment of their Lordships in Baladin Ram's case related to concealed income which had been found to have accrued to the assessee concerned from undisclosed sources. As held by a Division Bench of this court sitting in circuit at Delhi, to which judgment I was a party, in Hukam Chand Ulfatrai v. Commissioner of Income-tax, there can be no previous year in respect of income from an undisclosed source other than the financial year next preceding the assessment year. Cases relating to income from undisclosed sources do not, therefore, furnish any analogy to cases of the present type. It was point ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... use (a) of clause (i) of sub-section (11) of section 2 of the Act, in respect of any separate source of income, it is not necessary for him to have either a separate book of account in respect of the income from the separate source or even to have a separate part of the book confined to income from that source. It is enough if account in respect of the separate source of income has been maintained by the assessee, and that account has been made up to a date within the twelve months ending on the 31st day of March next preceding the year for which assessment is to be made in respect of a year ending on any date other than the 31st day of March, to entitle an assessee to exercise the option in question for the first time in respect of the sep ..... X X X X Extracts X X X X X X X X Extracts X X X X
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