Shri Sanjay Desai v. The Assistant Commissioner Of Income-Tax, Central Circle 27, Mumbai

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORIGINAL SIDE INCOME TAX APPEAL NO.132 OF 2003 Shri Sanjay Desaivs.The Assistant Commissioner of Income-tax,Central Circle 27, Mumbai. Appellant Respondent Mr.Sunil Lala for the appellant. Mr.R.V.Desai, senior counsel with Ms.S.V.Bharucha i/b.Mr.P.Kapur for the respondent. CORAM: R. M. LODHA &J.P.DEVADHAR,JJ. DATED: 15th October 2004 P.C. Heard Mr.Sunil Lala, the learned counsel for theassessee and Mr.R.V.Desai, the learned senior counselfor the revenue.2. The assessee in his statement under Section 132(4)of the Income Tax Act failed to specify the manner inwhich the income was earned from gambling speculation.He only disclosed that he earned Rs.27,50,000/- fromgambling speculation. The manner in which the saidincome was earned was not specified in his statementunder Section 132(4). In view thereof, obviously, the condition of Explanation 5 appended to section 271 (1)(c) was not satisfied. 3. The observation made by the Tribunal that the expression "the manner" occurring in explanation 5appended to section 271 (1)(c) reflects some kind ofevidence in support of the nature of income has to be understood to mean the manner in which such income was derived and not the disclosure of the source alone. 4. The reliance placed by the learned counsel for theappellant on the Circular No.469 dated 23rd September1986 and the judgments of the Supreme Court in the caseof Commissioner of Income-tax v. Vegetable ProductsLtd., 88 ITR 192 and Mancheri Puthusseri Ahmed & ors. v. Kuthiravattam Estate Receiver, (1996) 6 SCC 185 for what we have observed above have no application. 5. No substantial question of law arises. 6. Dismissed in limine. (R.M. LODHA,J.) (J.P. DEVADHAR,J.)