1959 (5) TMI 12 - SC - Income Tax

whether there was any material to support the finding of the Tribunal that the sum of ₹ 1,41,000 represented the secreted profits of the appellant's business and as such liable to be taxed in the hands of the appellant under the Indian Income-tax Act and the Excess Profits Tax Act ?

Held that:- The Tribunal in arriving at the conclusion it did in the present case indulged in suspicions, conjectures and surmises and acted without any evidence or upon a view of the facts which could not reasonably be entertained or the facts found were such that no person acting judicially and properly instructed as to the relevant law could have found, or the finding was, in other words, perverse and this court is entitled to interfere.

We are, therefore, of opinion that the High Court was clearly in error in answering the referred question in the affirmative. The proper answer should have been in the negative having regard to all the circumstances of the case which we have adverted to above.

The appeals will accordingly be allowed, the judgment and order passed by the High Court will be set aside and the referred question will be answered in the negative. Appeal allowed.