Law:

Section:

Rejection of accounts Additions Additions of cash credits in suspense account towards income from undisclosed sources Further additions to profits in business Whether permissible. In the assessment of the Assessee, the Income tax Officer added certain amounts to the profits from his business as disclosed by him and further another amount being the excess credit in the suspense account as income from undisclosed sources. The assessee contended that the excess credit stood explained to the extent of additions to the profits of his business and to that extent there would be double taxation ; Held, that as the amount of excess credit was founts to be income from undisclosed sources unconnected with the business of the assessee and the other additions were to the profits of his business both the additions could be made and that the assessee had not explained the excess credit in his suspense account to the extent of the additions to the profit in his business. Chenna Basappa v. Commissioner of Income tax (1958) 34 I T R 576 fol. Auddy & Brothers v. Commissioner of Income tax (1955) 28 I T R 713 ; Chenna Basappa v. Commissioner of Income tax (1958) 34 I T R 576 ; Ramcharitar Ram Harihar Prasad v. Commissioner of Income tax (1953) 23 I T R 301 ; Seth Kalekhan Mahomed Hanif v. Commissioner of Income tax (1958) 34 I T R 669 and Srinivas Ramkumar v. Commissioner of Income tax (1948) 16 I T R 254 ref. JUDGMENT BHUTT, C. J. The Income tax Appellate Tribunal, Bombay, was directed by this Court to submit a statement of case under section 66(2) of the Income tax Act, 1922, on the following question; "Whether in the facts and circumstances of the case there was any material on record to hold that the assessee failed to explain the excess credit in the anamat account to the extent of Rs. 10,230 in view of the addition made by the Department itself to the extent of that amount as the estimated profits to his income?" The above question has accordingly been referred to this Court for judgment. The assessee is a Hindu undivided family carrying on money lending business and business in Kirana, gur, sugar, betel nuts, sweet oil, etc. The accounts are maintained by him according…

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