Commissioner of Income-tax ], the question was whether the high denomination notes in the possession of the assessee could be assessed as undisclosed profits when ... produced affidavits from some persons that the assessee was paid in high denomination notes during the relevant period. The Supreme Court held that when
This court was concerned there with the encashment of high denomination notes. In that case, some unexplained high denomination notes were treated as the undisclosed ... assessee which showed the receipt of a sum on conversion of high denomination notes tendered for conversion by the assesssee himself, it is necessary
denomination notes in January, 1946, the assessee encashed notes of the value of Rs. 19,000 and five members of the family encashed notes ... question of assessment of the entire amount represented by the high denomination notes was under direct consideration, that it was open to the Income
managed to convert the unaccounted
money in the form of old high denomination notes,
generated from the sand mining business with the
help of certain ... managed to convert the unaccounted money in the
form of old high denomination notes, generated
from the sand mining business with the help of
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also seen that five members of the family had encashed notes of
the value of Rs.1,10,000/- and the Income-tax Officer reopened ... reopen the assessment of the family to include the amount of high
denomination notes encashed separately by the members. It was also found
based merely on surmise. In that case, the assessee encashed 61 high denomination notes of Rs. 1,000 each in the year of account. During ... explanation as to 31 of the notes and rejected it as to Rs. 30,000. The High Court holding that the finding
undisclosed sources. On a writ petition before the High Court filed by the assessee, the High Court held that the ITO did not apply ... that case, a HUF consisting of six members had encashed high denominational notes of the value
change their 500,1000 Rupees currencies and to declare the high denomination
notes Rs.1000 and Rs.500 as valid till 30.12.2016.
!For Petitioner ... country;
And whereas, it has been found that high denomination bank notes are
used for storage of unaccounted wealth as has been evident from
stated that the exact amount covered by these sales was noted after the receipt of the respective invoices. The amount credited was originally entered ... assessee showing the receipt of a sum on conversion of high denominational notes. It is observed in this decision that at that stage the department
Supreme Court was dealing with a validity of the High
Denomination Bank Notes (demonetization) Ordinance, 1946.
28.This Ordinance had been promulgated by the Governor ... that as the High denomination Bank Notes (Demonetization) Ordinance
of 1946 having been promulgated during the period between 27.06.1940
and 01.04.1946, it is perpetual
