9911796707
TMI Blog1964 (9) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... spect of two such notices for two separate assessment years does not lie and, therefore, Mr. R. K. Gulati, the learned counsel for the petitioners, elected to confine the petition only to the assessment year 1958-59. The relief sought is for the quashing of the orders, annexures "F-1" and "H-1", under sections 147(1) and 142 of the Act for the assessment year 1958-59. The facts leading up to this petition are these. The petitioner was one of the partners of the firm which carried on business of brick manufacturers in the name and style of Messrs. Krishna Brick Field, Sulem Sarai, Allahabad. The petitioner had an as. 0-7-0 share in the profits of the aforesaid firm in the relevant year of account. Two amounts of Rs. 6,380 and Rs. 5,936 wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see's reply dated December 29, 1960, enclosed with the explanation is on the miscellaneous file of the assessee for the assessment year 1959-60. The sale vouchers mentioned by the assessee are in respect of the sale of ornaments for Rs. 5,936 pertaining to 1959-60 assessment and there is no voucher for the sale of ornaments to Shri Jagannath Seth, Allahabad. The assessee's explanation was disbelieved and the sum of Rs. 6,380N was brought to assessment in the assessment year 1958-59. Before, however, the sum of Rs. 5,936 could similarly be brought to the assessment year 1959-60, the appeal for 1958-59 had been heard by the Appellate Assistant Commissioner who considered that, as this income was treated as income from an undisclosed source, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of attack in this writ petition. This case clearly falls within the ratio of the Supreme Court decision in Calcutta Discount Co. Lid. v. Income-tax Officer, where it was laid down that all that was required of the assessee was that he should disclose the primary facts and the legal inference to be drawn from those facts was a matter for the Income-tax Officer. In that case, the assessee-company had been representing that the sales of shares were casual transactions and were in the nature of a mere change of investment ; but the Income-tax Officer had discovered that the company was in fact carrying on a business of selling shares contrary to its earlier representations. It was held that it was the duty of the assessee-company only to dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elf should in the case of every cash credit admit, contrary to what he alleges, that the income was from an undisclosed source, otherwise he would render himself liable to action under section 147(1) of the Act of 1961. In the present case, the petitioner had admittedly, according to the assessment order itself in respect of the original assessment for the assessment year 1958-59, disclosed the existence of the said credit together with the receipts alleged to be from the sale of ornaments and there was nothing else which the petitioner could reasonably have been expected to disclose. The Income-tax Officer, after drawing the inference that this was income from an undisclosed source, fell into the error of law in thinking that it was asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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