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TMI Blog1982 (8) TMI 134X X X X Extracts X X X X X X X X Extracts X X X X ..... of the investment, she explained that at the time of her marriage she got a sum of Rs. 10,000 as presents from family members and friends and that her husband had given Rs. 20,000 for maintenance when he left for America and that she has earned a sum of Rs. 19,000 by lending the money thus available at her disposal and that she received a sum of Rs. 6000 as gift from her father during the course of four years. When evidence was asked for, she made a voluntary disclosure under the Voluntary Disclosure Act of 1976 for a sum of Rs. 32,000. In the declaration it was stated that Rs. 32,000 is for asst. yr. 1963-64 to 1965-66. The ITO accepted this sum of Rs. 32,000 and also the gift of Rs. 6,000. As regards the accrual of interest of Rs. 19,000, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... early prove the accrual of interest. It is admitted that the assessee had Rs. 32,000 for over a period of four years. So, the case of the assessee that when she had an amount of Rs. 32,000 available with her, she could have easily invested it and earned Rs. 19,000 as interest, in four years, is proved and is acceptable. It is a fact that the assessee in 1965 spent Rs.19,000 of which Rs. 1,500 is admittedly interest income. The only question is whether Rs. 17,500 is income from other sources unexplained or from interest accrued. It is always better and fair and proper to infer that money in the possession of a person came from legitimate and lawful source particularly, when there are possibilities for that source. For instance, if Rs. 32,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct evidence. In this cade, the possibility of accrual of interest of Rs. 32,000 is and cannot be ruled out. It may be that at this distance of time it is not possible to tender direct evidence regarding the persons to whom money was receipt. It is all perverse and unreasonable to insist on such evidence after a period of 10 to 12 years. Possibilities have to be taken into consideration. After all the question is whether the explanation about source is satisfactory or not. When two inferences are possible, it his better as we stated earlier to prefer the one that is in consonance with legal and legitimate activities. It is preferable to attribute the source of money to legal activities when there is a possibility that such legal activities r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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