Law:

Section:

Section 69A, read with section 256 of the Income-tax Act, 1961 - Unexplained moneys - Assessment years 1959-60 to 1961-62 - ITO on finding that assessee had made voluminous deposits in various banks treated them as assessee's income from undisclosed sources - However, Tribunal concluded that there were extra profits which exceeded total bank deposits and after certain adjustments amount in question could be held explainable by assessee for managing bank deposits - Whether no question of law arose from order of Tribunal - Held, yes FACTS The ITO noticed that the assesses had made deposits in a number of banks for disputed periods. These deposits were treated by the ITO as the assessee's income from undisclosed sources. Assessment was made accordingly. The decision was upheld in appeal by the AAC. On appeal the Tribunal, held that the deposits appearing for the assessment years could be explained by the additional income assessed during the previous years. On application: HELD In the of the AAC there was a table indicating the addition of extra profit and bank deposits for the whole period under dispute. The total of the extra profit added for the period of 13 years exceeded the total of the bank deposits. The Tribunal made deductions on account of certain marriage expenses and domestic expenses. After making allowance for those expenses, the Tribunal found out the amount was available to the assessee for making deposits in the banks. That approach of the Tribunal did not disclose any error of law. The Tribunal, was, therefore, justified in allowing the appeals as indicated in its . The Appellate decision of the Tribunal did not raise any question of law. The application was dismissed. Note : Decided in favour of assessee. CASE REFERRED TO CIT v. Kuppuswami Mudaliar [1964] 51 ITR 757 (Mad.). JUDGMENT V.G. Oak, CJ.-These are three connected applications under section 256(2) of the Income-tax Act, 1961. Messrs. Ram Achal Ram Sewak, Akbarpur, are the assessees. The Income-tax Officer, Faizabad, noticed that the assessees had made deposits in a number of banks from the year 1959-60 to the year 1965-66. These deposits were treated by the Income-tax Officer as the…

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