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1967 (4) TMI 14 - SC - Income TaxHaving found that the assessee was not able to explain satisfactorily the source of the credit of ₹ 1,37,000, whether the Tribunal had any material to come to the conclusion that the addition of ₹ 1,37,000 made by the Income-tax Officer as the income from undisclosed sources should be reduced to ₹ 50,000 only ? Whether on the facts and in the circumstances of the case, the Tribunal was justified in law in reducing the addition of ₹ 1,37,000 to ₹ 50,000 as income from undisclosed sources? Held that:- The High Court correctly answered the two questions in the negative by observing that the Tribunal's conclusion that out of the amount brought to tax by the Income-tax Officer only ₹ 50,000 represented income from undisclosed sources was based on no evidence. The judgment recorded by the Tribunal has not the merit of clarity or of consistency. The Tribunal commenced by disbelieving the explanation of the assessee relating to the source of the credit entry. After some inconclusive statements it proceeded to record that it was not unlikely that the assessee had some cash on hand from profits earned in the trade from jaggery, and from assets received on partition of the joint family of which the assessee was a member. In estimating ₹ 50,000 as the income from undisclosed sources, the Tribunal merely relied upon the offer made by counsel for the assessee. This was an unsatisfactory way of disposing of the appeal. The High Court has held, and we agree with the High Court, that the judgment of the Tribunal is based on no reasoning and is on that account speculative. Appeal dismissed.
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