FACTS :- Nahalchand Laloochand (assessee) was a firm which did the business of the selling agency of the Brady group of Mills and the Kohinoor Mills. The total income as assessed to tax by the Income-tax Officer for the assessment year 1947-43 was Rs. 4,96,944, including a sum of Rs. 1,65,000 Which was credited on December 20, 1945, in the account of Bai Jivibai who was the widow of one of the partners of the assessee firm who had died in 1940. The assessee contended that Bai Jivibais husband had given, her gold ornaments which she had sold and the amount of Rs. 1,65,000 was the sale proceeds which was credited to her account.

2. The taxing authorities held that the case of the assessee was not true and the sum of Rs. 1,65,000 represented income of the assessee from an undisclosed source. The Excess Profits Tax Officer also took the view that the amount represented undisclosed profits of the assesses firm from business.

3. Two appeals were preferred to the Appellate Tribunal, one under the Indian Income-tax Act, 1922, and the other under the Excess Profits Tax Act, 1940, and both appeals were dismissed. In its order the Tribunal observed as follows : "In the present case the