TMI Blog1954 (9) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... ounting, years. The original assessment was made by the Income Tax Officer on a sum of ₹ 5117 as total income derived by the assessee from property and from business The Income Tax Officer later on discovered that on 21-1-1946 the assessee had encashed high denomination notes to the extent of ₹ 22,000. A proceeding under Section 34 was started against the assessee who was asked to explain the source of this amount. The assessee explained that the amount was a part of the cash balance of the business. This explanation was rejected and the Income Tax Officer assessed the whole amount of ₹ 22,000, as secreted profits of the assessee from the business. An appeal was preferred by the assessee to the Appellate Assistant Commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsel that for the mica business the assessee kept his account books according to the calender year 1946 and for the cloth and grain business the account books were kept according to Diwali year 2002-2003 Samwat, corresponding to the period from 19-11-1945 to 26-10-1946. In the course of assessment the assessee had intimated his option that the previous year should not be the financial year 1946-47 but should be the accounting year for the two businesses according to the books of account. The point taken by Mr. Tarkeshwar Prasad was that it was not open to the Tribunal to say that the secreted profits which the assessee had made from the businesses of mica and cloth and grain should not be assessed for the previous year according to the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o businesses of mica and cloth and grain. In the course of his argument Mr. R.J. Bahadur appearing on behalf of the assessee stressed the point that the profitable deals referred to by the Income tax Officer should be taken to be a distinct source of income within the meaning of Section 2 (11) of the Income Tax Act. We are unable to accept this argument as correct. The profitable deals were made by the assessee in the two businesses of mica and cloth and grain and merely because that these deals had not been disclosed by the assessee in his account books it cannot be said that they are a separate source of income within the meaning of Section 2 (11) of the Act. To adopt the language of Lord Atkin in the case of -- 'Rhodesia Meta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... except with the consent of the Income tax Officer and upon such conditions as the Income tax Officer may think fit . In this case it is the admitted position that the assessee had exercised his option in the course of assessment and had chosen as accounting years, the calender year 1946 and the Diwali year 2002-2003 for the respective business of mica and of cloth and grain. We see therefore, no justification on the part of the Tribunal to hold that the previous year, for the secreted profits of the amount of ₹ 19,000 should be financial year 1945-46 and that assessment should have been made in the assessment year 1946-47. (4) For these reasons we hold that on the facts and circumstances of the case, the sum of ₹ 19,000 was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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