Law: Income Tax Act, 1922

Section:

Income tax----Assessment Assessee pleading cash credits to be genuine Income tax Officer rejecting plea adding the same as income from undisclosed sources .Appeal Assessee taking plea that cash credits represented income from undisclosed sources taxed in earlier years Held, that assessee was not barred to take such alternative plea though for the first time in appeal. 1982 Tax L R 1823 (Madh. Pra.) fol. 1982 Tax L R 1823 ; 123 I T R 457 ; 106 I T R 984 (Mad.) and 109 I T R 360 (Mad.) ref. JUDGMENT G. P. SINGH C. J. As directed by this Court in Miscellaneous Civil Case No. 128 of 1973, decided on 16 8 1978, the Tribunal has stated the case and referred the following question of law for our answer : "Whether on the facts and the circumstances of the case, the Appellate Tribunal was justified in deleting the amount of Rs. 1,45,000 assessed as income from undisclosed sources?" 2. The relevant assessment year is 1963 64. In the account books the relevant accounting year cash credits amounting to Rs. 1,45,000 were found in ten different names. The Income tax officer found that the cash credits were not genuine and on this basis he treated the entire sum of Rs. 1,45,000 as income of the assessee from undisclosed sources. In appeal before the Appellate Assistant Commissioner, the assessee contended that the cash credits really represented the income from undisclosed sources which were taxed in earlier years and that they did not represent the income earned in the relevant accounting year. This explanation was not accepted by the Appellate Assistant Commissioner. The Tribunal, however, accepted this explanation. 3. The law on the question which arises before us has been settled by the decision on the Supreme Court in Anantharam Veerasinghian Co. (1980) 123 I T R 457 : 1980 Tax L R 722. It was observed in that case that there can be no escape from the proposition that the secret profits or undisclosed income of an assessee earned in an earlier assessment year may constitute a fund, even though concealed, from, which the assessee may draw subsequently for meeting expenditure or introducing amounts in his account books. It was further observed that it is quite another…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492