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Section 69A of the Income-tax Act, 1961 - Unexplained moneys - Assessment year 1969-70 - Assessee offered certain amount under voluntary disclosure scheme - Disclosure application was not accepted by Commissioner - Whether ITO was justified in assessing amount in question as income from undisclosed sources - Held, yes FACTS The ITO made addition to total income of the assessee. The assessee claimed that said amount was not liable to be added to his taxable income, as it had been disclosed by him under the disclosure scheme. The ITO did not accept the contention of the assessee on the ground that the disclosure application had not been accepted by the Commissioner. He, therefore, assessed the said amount as income from undisclosed sources. The AAC and also the Tribunal upheld the order of the ITO. On reference : HELD It was not in controversy that the disclosure made by the assessee had not been accepted. That not having been accepted, the necessary inference would be that the said sum was income from undisclosed sources. There could be no other conclusion in that regard. The ITO, the AAC and the Tribunal were all of the same view. In that view of the matter, there was no escape form the position that the Tribunal was absolutely correct in upholding the addition in the taxable income of the assessee. Note: Decision was against assessee. B.P. Rajgarhia and S.K. Sharan for the Respondent. JUDGMENT The question referred to us under section 256(1) of the Income-tax Act, 1961, is as follows: "(1) Whether, on the facts and in the circumstances of the case, the addition of Rs. 38,500 sustained in the assessment year 1969-70 is legal and valid?" In this case, we are concerned with assessment year 1969-70. The assessee was assessed as individual in the assessment proceeding. The Income-tax Officer added a sum of Rs. 38,500. This sum the assessee claimed was not liable to be added to his taxable income, as it had been disclosed by him under the disclosure scheme. The Income-tax Officer did not accept the contention of the assessee on the ground that the disclosure application had not been accepted by the…

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