Law: Income Tax Rules, 1922

Section: 4(3) (vii)

(a) Income-ax Act (XI of 1922) S. 4(3) (vii)-Words and phrases-"Income"-Income from undis closed source-Term "income" as used in Income-tax Act, 1922--A term of wide significance, generally and ordinarily connoting periodical monetary return, coming in with same sort of regularity, or expected regularity, from a definite source-Multiplicity of forms income may assume, however, beyond enumeration and income need not necessarily be recurrent return from a definite source notwithstanding its being generally of such character-Income may consist of a series of separate receipts such as happens in case of professional earnings-Question whether a particular kind of receipt amounts to income or not, in last analysis, depends for its answer on peculiar facts and circumstances of case-Nature of receipt and its source if not satisfactorily explained by assessee Income-tax Officer may legitimately presume amount in question to be income of assessee from an undisclosed source [Words and phrases]. Commissioner of Income-tax, Bengal v. Shaw Wallace & Company A I R 1932 P C 138 ; Commissioner of Income-tax, Bengal v. Mercantile Bank of India Limited and others A I R 1936 P C 238 ; Raja Bahadur Kamakshya Narain Singh of Ramgarh v. Commissioner of Income-tax, Bihar & Orissa 1943 I T R 513 ; Commissioner of Income-tax v. Indra Sen Raizada, Meerut A I R 1940 All. 154 ; Commissioner of Income-tax v. Messrs Universal Engineering Co. P L D 1963 Kar. 487 ; Messrs Ellahi & Co. v. Commissioner of Income-tax, P L D 1963 Kar. 490 ; Auto Stores v. Commissioner of Income-tax. East Pakistan P L D 1964 Dacca 433 ; A. Gobindarajulu Madaliar v. Commissioner of Income-tax, Hyderabad (1958) 34 1 T R 807 ; Messrs Muhammad Akbar Muhammad Afzal v. Income-tax Appellate Tribunal 1972 S C M R 409 and Miss Assia v. Income-tax Appellate Tribunal P L D 1979 S C 949 ref. (b) Income-tax Act (XI of 1922) S. 4;3)(vii)-Income from undisclosed source -Finding recorded as to assessee/appellant having got married at a very young age and not having any independent source of income-Cannot absolve assessee from explaining presence of large amount of cash in her hands-Income-tax…