TMI Blog1970 (9) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... had also some business in brick-kiln. He had some income from immovable property. In the present reference we are largely concerned with the assessee's business in food grains. There was a scheme for collecting grains for the Government under the Grain Procurement Order of 1944. Cultivators had to bring their quotas of food grains to kacha arhatias, who held licences for the purpose. Kacha arhatias brought the grainis so collected to purchasing agents appointed by the Government for the purpose. The assessee was such a purchasing agent for procuring foodgrains. The purchasing agents had to maintain prescribed registers. There was some difficulty in collecting food grains from cultivators. The assessee, therefore, purchased foodgrains from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e department, raised a preliminary objection that the present reference is incompetent. He urged that at no stage did the assessee raise the question of applicability of the proviso to section 13 of the Act. consequently, no such question can be referred to this court under section 66 of the Act. Dr. Misra invited our attention to the grounds of appeal before the Appellate Assistant Commissioner and the Appellate Tribunal. These are annexures " B " and " C " to the statement of the case. Annexure " C-1 " is a copy of the Tribunal's judgment dated June 22, 1955. It is true that none of these three documents makes a pointed reference to the proviso to section 13 of the Act. But we find that the assessee has been urging throughout that the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt books were lying with the anti-corruption department. Annexure "A" is a copy of the Income-tax Officer's order dated December 21, 1953. He has quoted one passage from the judgment of the sessions judge about criminal conspiracy. It was mentioned in the passage that there was an agreement of criminal conspiracy to forge records. In the first place, Shri Ram's name is not expressly mentioned in that passage. Secondly, Shri Ram was ultimately acquitted of the charge of criminal conspiracy. On page 5 of his order the Income-tax Officer observed thus : " Since payments debited under various beads such as tulai, kacha arhatia commission, etc., etc., have not been proved by the assessee, it is not possible to accept the account books of g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perly be deduced from the assessee's account books. It is true that the Income-tax Officer has found some faults with the accounts. But such faults do not necessarily bring a case within the scope of the proviso to section 13 of the Act. According to the finding of the authorities, charges for tulai and kacha arhatia commissioner were claimed, although such expenditure was not in fact incurred by the assessse. That may be a good ground for disallowing those particular charges. But from that circumstance it could not be said that income of the assessee could not be deduced from the accounts maintained by him. The present case is not covered by either of the two limbs of the proviso to section 13. The discussion before us was confined to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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