Law: Income Tax Act, 1922

Section: 34,4(2A)to(2F),12

(a) Income-tax Act (XI of 1922)---S. 34--Scope of Cash in hand as well as investment shown by assessee not taken into account in original assessment-Such income escaped income-tax - Income-tax Officer, held, competent under S. 34 to re-open case; in circumstances of case. (b) Income-tax Act (XI of 1922)- -----S. 4(2-A) to (2-F)-Application of--Assesses showing cash as well as his investment in property, in wealth statement-Income-tax Officer making addition on basis of such statement-Section 4(2-A) to (2-F) for making addition, held, not applicable in circumstances of case. (c) Income-tax--- ---- Income from undisclosed source-Assesses not able to show source of income or his explanation to that effect found unsatisfactory. ­Such income, held, income from undisclosed sources. Income from an undisclosed source may mean the income from an undisclosed part of known activities of the business of the assessee or it may 'eon a source which is unknown to the assessing officer or in other words is from a source of profit earning activity which had not been disclosed by the assesses. Therefore, either it is undisclosed profit of known business or it is a profit from business which was not connected with the known business and is unknown and has not been disclosed by the assesses. (d) Income Tax Act (XI of 1922)- Ss. 4(2-A) to (2-F), 12 & 34-Interpretation of-Section 4(2-A) to (2-F) has not effect of repealing S. 12 even impliedly - Object of S. 4(2-A) to (2-F) to facilitate work of assessing officer -Assessee showing cash in band and investment of amount in his wealth statement-Income-tax Officer on coming to know of such fact making addition of such amount and re-opening case under S. 34 - Held, A. A. C. was not right in holding that addition was made under S.4(2-F)- or that prior appr6val of I. A. C. was necessary in facts and circumstances of case - A. A. C. deleted addition on technical ground and without going into merits of case­. Case remitted back to A. A. C. for decision of appeal on merits. ORDER This is a departmental appeal relating to assessment year 1976-77. The assessee is an individual deriving income as a partner is a registered firm. 2. The facts…

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