9911796707
TMI Blog1950 (9) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... case, the issue of the notice under Section 34 of the Income Tax Act was legal ? (2) Whether, in the circumstances of the case, the sum ₹ 15,000 was rightly held to be the assessees income of the previous year Samvat 1994-95 taxed in the assessment year 1939-40 ? The assessee is a Hindu undivided family carrying on the business of dealing in cloth under the name and style of Messrs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sudi 5, Samvat 1995, the accounts of Firm Ganesh Narain Onkar Mal of Bombay had been debited with the same amount whereas the accounts of Firm Dilsukh Rai Jai Dayal of Banares had been credited with that amount. The accounts of Firm Ganesh Narain Onkar Mal of Bombay were also examined and it was found that for some years prior to Samvat 1995 that firm had shown a sum shown in the account books of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax should not be assessed on this amount as it had escaped assessment during the assessment year 1939-40. It was held by the Income Tax Officer that this amount was brought in the accounts of the assessee for the first time on Kuar Sudi 5, Samvat 1995 when entries were made in the accounts of the Bombay and Banares firms and since adjustments had been made during the relevant previous year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7; 15,000 was the income of the assessee. This point was specifically raised by the assessee in its grounds of appeal before the Tribunal. The order of the Tribunal also mentions that such a ground had been raised. The Tribunal, however, assumed it to be income and proceeded only to decide whether it was the income of the previous year relevant to the assessment year in question or of some other y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee. In the absence of any finding that this amount was income it is obviously not assessable to Income Tax at all. The question whether it would be assessable in the year in question or not does not therefore, arise. Further, in view of this finding, it is not necessary to decide the first question whether the issue of notice under section 34 of the Indian Income Tax Act was legal. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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