TMI Blog1967 (4) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... e by observing that the Tribunal's conclusion that out of the amount brought to tax by the Income-tax Officer only ₹ 50,000 represented income from undisclosed sources was based on no evidence. The judgment recorded by the Tribunal has not the merit of clarity or of consistency. The Tribunal commenced by disbelieving the explanation of the assessee relating to the source of the credit entry. After some inconclusive statements it proceeded to record that it was not unlikely that the assessee had some cash on hand from profits earned in the trade from jaggery, and from assets received on partition of the joint family of which the assessee was a member. In estimating ₹ 50,000 as the income from undisclosed sources, the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and that the balance of Rs. 1,37,000 was the assessee's income from undisclosed sources. The order passed by the Income-tax Officer assessing to tax the income of the assessee for the year 1951-52 was set aside by the Appellate Assistant Commissioner on the ground that under section 2(11) of the Income-tax Act, 1922, the previous year for the income from other sources could only be the financial year ending March 31, 1950. Giving effect to this finding, the Income-tax Officer issued a notice of reassessment under section 34 of the Indian Income-tax Act for bringing to tax the amount disclosed by the books of account of the assessee for the assessment year 1950-51. The assessee submitted a petition to the High Court of Mysore for a writ d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n able to explain the source of Rs. 1,37,000 satisfactorily. But there have been trading additions for the assessment years 1951-52 and 1952-53 of Rs. 27,899 and Rs. 85,000. But the assessee has not proved that this amount was all intact and besides, as pointed out by the departmental representative, the bank balance on 22nd October, 1946, would not have represented the cash possessed by the assessee and at the same time, it is not unlikely that the assessee had some cash having regard to the trade in jaggery, the assets got on partition in the Hindu undivided family and other sources ; the counsel for the assessee also stated that his client was prepared to be assessed on Rs. 50,000. So we direct that the addition must be confined to Rs. 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om jaggery trade and the receipt by him at the time of the partition in his family is not based on any material. Surmises have no place in judicial and quasi-judicial proceedings. " The judgment recorded by the Tribunal has not the merit of clarity or of consistency. The Tribunal commenced by disbelieving the explanation of the assessee relating to the source of the credit entry. After some inconclusive statements it proceeded to record that it was not unlikely that the assessee had some cash on hand from profits earned in the trade from jaggery, and from assets received on partition of the joint family of which the assessee was a member. In estimating Rs. 50,000 as the income from undisclosed sources, the Tribunal merely relied upon the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had drawn cheques " to self " on the Mysore Bank for Rs. 1,67,800 and between January 18, 1947, and November 25, 1947, the assessee had drawn cheques " to self " for Rs. 52,255 and that on October 22, 1946, the assessee had in his bank account a, balance of Rs. 1,39,946. Counsel contended that the assessee had at the material time large funds which could have been brought into the books of account on July 1, 1949, but the Tribunal failed to consider the evidence and had merely accepted the offer made by counsel for the assessee that he should be assessed in the sum of Rs. 50,000. For the reasons already recorded, we agree with the answers recorded by the High Court on the two questions. But it is necessary to give certain effective d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... S. C. Cambatia and Co. Ltd. the Bombay High Court explained the procedure to be followed in the disposal of an appeal conformably to the judgment of the High Court. Chagla C.J., in delivering the judgment of the court, observed : " ...... when a reference is made to the High Court either under section 66(1) or section 66(2) the decision of the Appellate Tribunal cannot be looked upon as final ; in other words, the appeal is not finally disposed of. It is only when the High Court decides the case, exercises its advisory jurisdiction, and gives directions to the Tribunal on questions of law, and the Tribunal reconsiders the matter and decides it, that the appeal is finally disposed of.... it is clear that what the Appellate Tribunal is do ..... X X X X Extracts X X X X X X X X Extracts X X X X
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