Law:

Section:

Section 143 of the Income-tax Act, 1961 - Assessment - Additions to Income - Assessment year 1960-61 - Whether where there is an unexplained cash credit, it is open to ITO to hold that it is assessee's income, and no further burden lies on ITO to show that income is from any particular source - Held, yes - Whether it is for assessee to prove that even if cash credit represents income, it is income from a source which has already been taxed - Held, yes - Whether where assessee declined to make a definite statement as to whether cash credit appearing in accounts of firm in which he was a partner represented assessee's disclosed income, Tribunal was justified in assessing amount of deposit in hands of assessee as income from undisclosed sources in addition to addition made to share income of assessee from said firm - Held, yes FACTS For the assessment year 1960-61, the assessee, a 50 per cent partner in a registered firm, was assessed on his deposit with the firm, as his income from undisclosed sources. Thereafter, the ITO while assessing the firm, estimated its profit and added half of it to assessee's income. Thus, two additions were made. On appeal, the AAC deleted the first addition on the ground that it was unfair to assess on that sum in addition to the assumed share in the firm's profit. On further appeal, the Tribunal restored the ITO's order. On reference : HELD In the assessee's books there was a credit entry for a certain sum. It was for the assessee to explain the source of that sum. The explanation offered by the assessee was rejected by the ITO and by the Tribunal. It was, therefore, open to these authorities to infer that the sum represented the assessee's income from some undisclosed source. According to the department, the source in question was outside the business of the firm. On the other hand, the assessee suggested that the undisclosed source might be covered by the business of the firm. The Supreme Court in CIT v. Devi Prasad Vishwanath Prasad [1969] 72 ITR 194 (SC) observed that where there is unexplained cash credit, it is open to the ITO to hold that it is income of the assessee and no further burden lies on the ITO to show that that…

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