Law:

Section:

section 68 of the income-tax act, 1961-cash credits-assessee's accounting period corresponding to assessment year 1953-54 ended on 30-9-1952 and his original assessment for assessment year 1953-54 was completed-later on, notice was served under section 148 of the act and two sums which were treated as unexplained credits showing income from undisclosed sources were added to assessee's income for assessment year 1953-54-all entries relating to these sums were made after 30-9-1952 but before 31-3-1953, i.e., in accounting period relevant to assessment year 1954-55-tribunal held that though relevant assessment year was 1953-54 when 1922 act was in operation, reassessment was done after 1961 act became effective and, hence, provisions of 1961 act applied and section 68 became applicable-whether tribunal was right in holding that provisions of section 68 applied and undisclosed income had to be assessed in assessment year 1954-55 and not 1953-54-held, no Facts The assessee's accounting period corresponding to the assessment year 1953-54 ended on 30-9-1952 and his original assessment for the assessment year 1953-54 was completed. Later on, a notice was issued under section 148 of the Act and two sums which were treated as unexplained credits showing income from undisclosed sources were added to the assessee's income for the assessment year 1953-54. All the entries relating to the said credits were made after 30-9-1952 but before 31-3-1953 and were in the books relating to the accounting period relevant to the assessment year 1954-55. The assessee's explanation regarding the credits was rejected and the AAC sustained the additions. The Tribunal held that though the assessment year under consideration was 1953-54, as reassessment was done after the 1961 Act came into operation and the 1922 Act stood repealed by virtue of section 297(2)(d)( ii), section 68 applied and undisclosed income had to be added in the assessment year 1954-55 and not in 1953-54. On reference : Held The Supreme Court held in Govinddas v. ITO [1976] 103 ITR 123 that the words 'All the provivisions of this Act shall apply'' occurring in section 297(2)(d )(ii) applied only to the machinery portion of…

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