Judgement

RAMASWAMI, J.: In this case the appellant (hereinafter called the assessee) was assessed for the assessment year 1956-57 on a total income of Rs. 8,400. The Income-tax Officer later on came to know that the assessee s income from the sale of estates had escaped assessment. The Income-tax Officer took action under Section 34. (1) (a) of the Income-tax Act, 1922 (hereinafter called the Act) for the assessment year 1956-57 on 13th August, 1959.

2. Under an agreement dated 18th May, 1955, a company called Mundakayam Valley Rubber Co. Ltd., sold and delivered an estate called Kuttikal Estate to one Mr. K. V. George. The area of the estate was 477 acres and 71 cents.Mr. A. V. George had entered into the agreement in his own name and on behalf of another company called the Kailas Rubber Co. Ltd. It was agreed that the vendor would execute the necessary conveyance in favour of Mr. A. V. George or his nominees. On 15th August, 1955, the assessee entered into an agreement with Mr. A. V. George whereby the assessee agreed to purchase 477:71 acres forming part of Kuttikal Estate for Rs. 6 lakhs. An advance of Rs. 11,000 was paid by the assessee. The balance of Rs. 5,89,000 was to be pa