TMI Blog1992 (8) TMI 132X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome claiming immunity as provided in Explanation 5 of s. 271(1)(c) of the Act. We may clarify here that we are concerned with part of such deposits standing in assessee s own name for which details are separately given hereinafter. Thereafter after the lapse of approximately 16 months the assessee filed returns in accordance with what was submitted earlier. Notice under s. 148 was issued in July, 1989 in response to which the assessee submitted that returns were submitted on20th April, 1989, wherein the amounts invested in deposits were declared as income and further that those returns should be taken as returns filed under s. 143. However, subsequently after about 7 months, on26th Dec., 1989, the assessee submitted revised returns showing reduced income by excluding investments in fixed deposits with National Confederation of Bank Employees (NCBE) and interest accrued thereon. The reason for revising the returns was stated to be the claim of the assessee for the first time that the fixed deposits did not belong to the assessee. When the assessee was confronted with her earlier admission it was submitted that the earlier statement was given at the behest of assessee s father-in-l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . He accordingly made additions as under: Year Value of deposit Interest accrued 1983-84 Rs. 85,000 Rs. 4,940 1984-85 Rs. 4,23,500 Rs. 29,965 1985-86 Rs. 11,64,000 Rs. 1,25,098 1986-87 Rs. 80,000 Rs. 2,20,402 3. The assessee appealed. The grounds raised before the CIT(A) were on various aspects of the controversy, legality as also on merits. Briefly they were as under: 3.1 The action taken under s. 148 r/w s. 147 was irregular. The CIT(A) rejected this ground after observing that the assessee could not exactly specify the grievance. This ground is raised in the memo of appeal but no reference was made to this ground at the time of hearing and, therefore, this ground is rejected as not pressed. 4. The assessee also challenged the completion of the assessment on the basis of lack of jurisdiction and limitation as provided under s. 153 of the Act. The CIT(A) held that the assessments were completed within the time and regarding jurisdiction no fatal mistake was brought to his notice. 5. Before the Tribunal the assessee has raised a ground with regard to limitat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e very significant. In the context of these words he highlighted the judicial approach required to be adopted, as was done in the following cases: (i) in the case of K.S. Kannan Kunhi vs. CIT; (ii) in the case of CIT vs. Smt. P.K. Noorjehan (1980) 15 CTR (Ker) 138 : (1980) 123 ITR 3 (Ker); (iii) in the case of Navnit Lal C. Javeri vs. AAC (1965) 56 ITR 198 (SC) especially the observations (iv) in the case of K.P. Varghese vs. ITO (1981) 24 CTR (SC) 358 : (1981) 131 ITR 597 (SC). Where certain observations were made with regard to right to receive something. It was submitted that in the absence of any source of income and considering the status of the lady, as also the age of the assessee it could not be believed that such large amounts invested in various deposits could have come out of undisclosed income of the assessee. The learned Departmental Representative relied upon the appellate order. 9. On consideration of the material placed before us we are not inclined to take a view different from one taken by the CIT(A). The CIT(A) has given categorical finding on the basis of sub-s. (4) of s. 132 of the Act. The said sub-section reads as under: "(4) The authorised offi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onably be found to be involved in such activities, to draw the inference that the credits constituted income from undisclosed sources, in the absence of satisfactory explanation, but such an inference should not be readily made in the case of a person who had no known business or other sources of income, or who could not even be reasonably suspected as engaged in income earning activities, in which case there must be substantial reasons to reject the assessee s explanation so as to make an addition. Mr. Ganesan highlighted these observations of their Lordships. But on going through the facts before us we find that the assessee had admitted engagement in income earning activities. Besides, there was a categorical and specific admission by the assessee during several proceedings in the case under consideration. Therefore, the ratio laid down by the Hon ble Supreme Court in the case of Govindarajulu Mudaliar vs. CIT (1958) 34 ITR 807 (SC) was required to be followed. In this case it was held whether a receipt is to be treated as income or not, must depend very largely on the facts and circumstances of each case. 12. The case of Smt. P.K. Noorjehan made interesting study. The assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ok into account complete absence of resources of the assessee, besides having regard to the age of the lady and the circumstances in which she was placed. 13. We would have happily followed this judgment so as to decide the issue in favour of the assessee because the judgment highlights the finer aspect of the judicial discretion which can be exercised by the Tribunal because of the wide powers granted to it under s. 254, but in the case before us the facts are not exactly similar. In the case under consideration there was no explanation as fairly stated by Mr. Ganesan, apart from the same being unsatisfactory. Besides, the lady has admitted time and again that she used to earn income from various sources like tuition and speculation. The age of the lady is also not that tender as was the case before the Kerala High Court. On the top of all she admitted various assets found at the time of the search though only for the part she took a different stand that too after a lapse of two years, after the death of her father-in-law. During the course of submissions Mr. Ganesan made an implicit point suggesting that the amounts were invested in cash and could belong to the late father-in-l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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