9911796707
TMI Blog1964 (3) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... 2001-2002 Bikram Samvat (September 27, 1944, to October 15, 1945) the firm was assessed in the assessment year 1946-47 by the Income-tax Officer, Non-Companies-cum-E.P.T. Circle, under section 23(3) of the Indian Income- tax Act. On February 19, 1955, the Income-tax Officer, Central Circle VI, to whom the case was transferred by the Central Board of Revenue, issued a notice under section 34 of the Act calling upon the firm to file a revised return of income for the corresponding accounting year. Pursuant to this notice the firm filed are turn showing an income of Rs.2,75,168 according to its original assessment as reduced in appeal. The Income-tax Officer thereafter inspected the books of account of the assessee and found that on November ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bombay head. office of the bank and a demand draft was issued from Bombay in the name of B. N. Gupta, son of Bajranglal Bhowalka----a partner of the assessee----on the Jamnagar branch of the bank and that with the aid of this amount a fixed deposit account was opened with the Central Bank of India, jamnagar, on November 21, 1944. On December 2,1944, a letter of guarantee and " a letter of continuity " signed by Raghunath Prasad Agarwalla and Gupta along with promissory notes signed by the firm for keeping these two deposits under lien were lodged with the bank for securing over draft facilities for the assessee in the sum of Rs. 10,00,000. The Income-tax Officer also found that an amount of Rs. 5,00,000 was tendered in cash in the Baraba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in appeal, in so far as it related to the two deposit receipts dated November 8, 1944 and November 21, 1944. But in respect of the receipt dated the Tribunal held that even though a similar modus was adopted for transferring " secreted profits " from Calcutta to Jamnagar there was " no connecting link in the matter between the assessee and the amount deposited in the name of Sheo Prasad Agarwalla ". The Accountant Member of the Tribunal observed : " In the case of the fixed deposit in the name of S. P. Agarwalla (SheoPrasad Agarwalla), however, there is a slight difference. The amount was not utilised by the assessee for an overdraft. Neither the amount found its way into the assessee's account books. This deposit was utilised by Sri H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tified in law. The Tribunal rejected the application observing that the question suggested by the Commissioner whether the Tribunal was justified in drawing an inference that " the fixed deposit of Rs. 5 lakhs in the name of Sheo Prasad Agarwalla did not represent the concealed income of the assessee firm was a question of fact not referable under section 66(1) of the Indian Income-tax Act ". The Commissioner of Income-tax then applied to the High Court of Calcutta for an order calling upon the Tribunal to state a case and refer it to the High Court. The High Court rejected the application. With special leave, the Commissioner of Income-tax has appealed to thiscourt. On behalf of the Commissioner, Mr. Rajagopala Sastri has contended tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nference from other basic facts will not alter its character as one of fact. " Mr. Sastri says that the income-tax authorities had found the following facts : (1) that the three deposits were made in quick succession, and the deposits in the name of Raghunath Prasad Agarwalla and B. N. Gupta were in fact held by the Tribunal as representing " secreted profits " of the assessee : (2) that the three deposits were in the same bank in the same Indian State and at the same branch and were made in similar circumstances ; (3) that the same modus was adopted for making overdraft arrangements in British India in respect of the three deposit receipts with the aid of these " secreted funds "; (4) that the names utilised for making the deposi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax Act and if the Tribunal declines to state a case, the High Court if it is not satisfied of the correctness of the decision of the Tribunal may require the Appellate Tribunal to state a case and to refer it. But the High Court has no power to call upon the Tribunal to state a case, if there is some evidence to support the finding recorded by the Tribunal, even if it appears to the High Court that on re-appreciation of the evidence, it might arrive at a conclusion different from that of the Tribunal. It cannot be said that the conclusion recorded by the Tribunal on the facts brought to our notice by Mr. Sastri is perverse. The Tribunal has rightly pointed out that the similarity of the transactions in respect of the three deposi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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