Law:

Section:

Section 143 of the Income-tax Act, 1961 [Corresponding to section 23 of the Indian Income-Tax Act, 1922] - Assessment - General - Assessment year 1945-46 - Whether income-tax proceedings under Act are not judicial proceedings in sense in which phrase 'judicial proceedings' is ordinarily used and India Evidence Act, 1972 does not apply to such proceedings - Held, yes - Whether in view of decision in seth Gurmukh Singh v. CIT [1944] 121 ITR 393, it is within competence of Tribunal to rest its decision inter alia on information gathered by it from s of criminal courts - Held, yes Section 68 of the Income-tax Act, 1961 - Cash credits - Assessment year 1945-46 - Whether initial onus of proving genuineness of credits in various accounts challenged by ITO lay on assessee - Held, yes FACTS For the assessment year 1945-46 the assessee declared the net assessable income at Rs. 16,373. The ITO did not accept the accounts of the assessee and made additions on account of unexplained cash credits. The Tribunal held that the profit returned by the assessee was ridiculously low and that the assessee's books did not disclose his true profits. After taking into account the explanations given by the assessee and other relevant facts, it was held that a lump sum addition of Rs. 50,000 to the income as returned by the assessee would meet the ends of justice. In deciding the questions, the Tribunal used inter alia the material on the record of the criminal case. On application under section 66(2) of the 1922 Act: HELD The proceedings under the Act are not judicial proceedings in the sense in which the phrase "judicial proceedings" is ordinarily used. The Indian Evidence Act, 1872, does not apply to proceedings under the Act. In view of the decision in Seth Gurmukh Singh v. CIT [1944] 121 ITR 393, it was within the competency of the Tribunal to rest their decision inter alia on the information gathered by the Tribunal from the s of the criminal courts referred to in that order. As regards the question regarding onus of explaining cash credits, the initial onus of proving the genuineness of the credits in the various accounts challenged by the ITO lay on the assessee. Since, as held…

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