Law: Income Tax Act, 1922

Section: 66(1)

Keywords: Income-Tax Officer, Evidence, Profits, Double Taxation, Expenses, Period, Proprietor, Failure, Consideration, Plea, Question Of Law, Financial Year, Costs, Question Of Fact, Appellate Tribunal, Notice, Investments, Taxable Income, Order, Assessment Year, Intangibles, Registered, Loan, Burden Of Proof, Undisclosed Income, Refusal, High Court, Receipt, Deposits Result: Question answered in the negative JUDGMENT [The Judgment of the Court was delivered by I. Mahmud J.]-This judgment will dispose of Income-tax Reference Nos. 9 and 13 of 1969, in which the common question of law has been referred to the High Court for opinion by the Income-tax Appellate Tribunal, Karachi Bench by its order dated 28-2-1968 in R. A. 68-72 and R. A. 59-63 of 1967/68 under section 66(1) of the Income-tax Act, 1922 (hereinafter referred to as the Act) at the instance of the applicant in each of the two references. Three other questions were also referred, but they have not been pressed before us by applicant's counsel The question is: "Whether on the facts and in the circumstances of the case, the Tribunal was justified in holding that a cash credit of Rs* 20,000/- could validly be included in the income of the applicant?" 2. The brief facts, which have given rise to the above question, are that during the assessment year 1959 60 for which the accounting year was 4-4-58 to 3 4-59, the assessee Malik Mir Hassan Khan and Malik Mir Hazar Khan were partners of the registered firm of M/s. Mustafa R.C.C. Pipe Works, Karachi, having a 0-3-6 and 0-3-0 annas share respectively therein. Each of the partners was? Assessed on his respective share income from the firm and on an addition of Rs.20,000/- on account of unexplained cash credit standing in his name in the books of the firm, While assessing the firm for the said assessment year in question, the firm's books were rejected and the profits shown therein of Rs. 2,76 575/- were enhanced to Rs. 8.00,152/- which were allocated to the partners according to their respective shares in the income of the firm. 3. The Income-tax Officer rejected the explanation of each of the applicants regarding the amount of Rs. 20,000/- standing to his…

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