1974 (2) TMI 18

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..... of the Income-tax Act, 1961, the petitioner has filed this writ petition. The petitioner was carrying on business in extraction and sale of manganese and iron ores. In the course of the proceedings relating to the assessment of his income in respect of the assessment year 1962-63, the Income-tax Officer found that there were certain discrepancies regarding the stock of manganese held by the pe .....

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..... negatived the contention urged on behalf of the petitioner with regard to the following items : (1) Rs. 1,75,000 shown as borrowals on hundies ; (2) Rs. 9,000 shown in suspense account ; and (3) Rs. 85,783 being the value of the stock of manganese ore held by the petitioner during the relevant period which had not been shown in his account books. Aggrieved by the order of the Commissi .....

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..... osed sources during the financial year 1960-61 and there being no accounts regarding the alleged undisclosed sources, were assessable as income of the petitioner only in the assessment year 1961-62, if at all they were assessable. In support of the above proposition, he relied on a decision of the Supreme Court in Baladin Ram v. Commissioner of Income-tax, in which it was observed by the Supreme C .....

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..... provisions of the Income-tax Act, 1961, which came into force on April 1, 1962, as the return of income had been filed alter April 1, 1962, and any pronouncement made on the basis of the provisions of the 1922 Act would not be applicable. Clause (b) of sub-section (2) of section 297 states : "297. (2) Notwithstanding the repeal of the Indian Income-tax Act, 1922 (11 of 1922) (hereinafter referr .....

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..... he above provision. Therefore, the order passed by the Commissioner in respect of a sum of Rs. 1,75,000 said to have been borrowed on hundies, Rs. 9,000 traced to an unexplained suspense account, and Rs. 13,261 attributable to the undisclosed stock during the period prior to March 31, 1961, treating them as taxable in the assessment year 1962-63 should be set aside and it is accordingly set asi .....

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