Law:

Section:

Section 4 of the Income-tax Act, 1961 [Corresponding to section 3 of the Indian Income-tax Act, 1922] - Income - Chargeable as - Assessment year 1945-46 - Assessee, who was assessed in status of resident and ordinarily resident in British India, received certain amount by three demand drafts remitted from outside British India - It was not plea of assessee that demand drafts represented income, which was either wholly or in part not chargeable to tax - Besides, it was not even attempted to be argued that source of income affected its eligibility to tax - Whether, in aforesaid circumstances, it could be concluded that Tribunal rightly recorded finding that amount in question remitted from outside British India during year of account constituted income from some undisclosed source - Held, yes FACTS The assessee was assessed by the ITO to tax in the assessment year 1945-46 in the status of individual resident and ordinarily resident in British India. In proceedings for reassessment of the income of the assessee, the ITO added to the total income of the assessee for the assessment year 1945-46 an amount of Rs. 2,20,000 remitted from Nawalgarh in Rajasthan - then without British India-by three demand drafts to Calcutta in the months of February and March, 1944. The plea of the assessee that the three demand drafts represented the assessee's cash balance which was sent from Calcutta in November, 1941, and was brought back in the months of February and March, 1944, was disbelieved. The order of the ITO was affirmed by the AAC and by the ITAT. The High Court on reference did not agree with finding of the Tribunal that the said sum of Rs. 2,20,000 remitted from Nawalgarh to Calcutta during the year of account constituted income from some undisclosed sources. On appeal to the Supreme Court : HELD The Tribunal did not record a finding that the income was "from some undisclosed business activity in British India of the assessee." The assumption made by the High Court that the Tribunal held that the income was from undisclosed business activity in British India was not warranted. Again, the total income of the assessee was liable to be charged to tax at the rates in force…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492