TMI Blog1954 (8) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... Lantern Factory. For the assessment year 1947-1948 the assessee returned a total income of ₹ 54,726. After the promulgation of the High Denomination Bank Notes (Demonetization) Ordinance, the assessee exchanged high denomination notes to the value of ₹ 3,97,000 on 22nd January, 1946. In her declaration made before the Imperial Bank the assessee stated that the reason for keeping high denomination notes was that she had always kept large sums with her personally as was the custom with the ladies of her status and position . In column 16 of the declaration the assessee made the further statement that she had received the money from her father and mother and other relations. The Income-tax Officer called upon the assessee to expla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 377; 3,97,000 exchanged by the assessee herself after the passing of High Denomination Bank Notes (Demonetization) Ordinance really belonged to the Maharaja of Dumraon. In proof of this statement the agent of the assessee pointed out that on a comparison of the high denomination notes withdrawn by the Maharaja in 1942 and 1944 it was clear that notes to the extent of ₹ 8,50,000 tallied with the notes exchanged by the Maharaja of Dumraon on the 18th of January, 1946, and that notes to the extent of ₹ 2,00,000 tallied with the notes exchanged by the Maharani on the 22nd of January, 1946, and that notes to the extent of ₹ 50,000 tallied with the notes exchanged by the Maharaj Kumar Kamal Singh on the 19th of January, 1946. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the Appellate Assistant Commissioner to show that ₹ 1,97,000 out of the total amount of ₹ 3,97,000 really belonged to the Maharaja of Dumraon and not the assessee. The Appellate Tribunal accepted this argument and remanded the case back to the Income-tax Officer to bring on record further evidence after proper investigation on the following lines: (1) To examine the lady on oath and to record her deposition; and (2) to investigate the claim of the lady that the sum of ₹ 3,97,000 could have come out of her husband's cash balance in the way that she alleges it to be . The Appellate Tribunal also stated: In this connection, the books of account of the husband, if produced by the lady in support of her case, should be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 3,97,000 there was definite proof that the amount of ₹ 2,00,000 of high denomination notes was identical with the amount withdrawn by the Maharaja of Dumraon from the Imperial Bank on the 11th of November, 1942, and the 20th of November, 1944. It was contended that as regards the amount of ₹ 2,00,000 the identity of high denomination notes has been established and there was definite proof that this amount of ₹ 2,00,000 belonged to the Maharaja and not to the assessee. With regard to the balance of ₹ 1,97,000 the assessee could not show that there was identity of the high denomination notes but it was shown on behalf of the assessee before the Appellate Assistant Commissioner that after the high denomination notes w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of being heard, pass such orders thereon as it thinks fit, and shall communicate any such orders to the assessee and to the Commissioner. It is true that in a proper case the Income-tax Appellate Tribunal may remand an appeal for further investigation to the Income-tax Officer under the provisions of section 33(4). It cannot be doubted that the Appellate Tribunal has a great measure of discretion granted to it under section 33(4) but the real question is whether the Income-tax Appellate Tribunal has legally exercised the discretion in this case in making the order of remand. The main point upon which the Appellate Tribunal made the order of remand was whether there was likelihood that the husband of the assessee was in possession of the su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exercised judicially; and 'discretion' means when it is said that something is to be done within the discretion of the authorities that that something is to be done according to the rules of reason and justice, not according to private opinion: Rooke's case 5 Rep. 100; according to law and not humour. It is to be, not arbitrary, vague, and fanciful, but legal and regular. And it must be exercised within the limit, to which an honest man competent to the discharge of his office ought to confine himself: Wilson v. Rastall 4 T.R. at p. 757. Applying this principle to this case it is manifest that the order of remand made by the Appellate Tribunal is not a legally valid order, and the first question referred to the High Court shoul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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