TMI Blog1959 (6) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... view of the addition made by the Department itself to the extent of that amount as the estimated profits to his income? The above question has accordingly been referred to this court for judgment. The assessee is a Hindu undivided family carrying on money-lending business and business in Kirana, gur, sugar, betel nuts, sweet oil, etc. The accounts are maintained by him according to the Diwali year, the material previous year for the purpose of assessment year 1951-52 being October 22, 1949, to November to his income, viz: (a) Income from undisclosed sources as distinguished from 'business' ... ₹ 40,389-0-0 (b) Profit in sweet oil business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ected by the Appellate Assistant Commissioner and in what manner any of the figures considered by the Appellate Assistant Commissioner which were the figures given to him by the assessee himself, were incorrect. There being no further explanation with regard to this item, we see no reason to delete this addition. It would thus appear and Shri Thakkar for the petitioner accepts before us that it was not the case of the assessee before the Income-tax authorities or before the Tribunal that the excess credit of ₹ 30,452 in the anamat khata was connected with the business from which the income of ₹ 6,400 or of ₹ 3,830 total ₹ 10,230 was made. However, the submission of the assessee on the point was that since the Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see as worthless, or where no evidence was tendered, he would be justified in taking the evidence of the books showing the cash deposits as conclusive of the fact that some income was made and related to and undisclosed source and he was not bound to indicate what that source was. 5. The next case is again of the Patna High Court, viz., Ramcharitar Ram Harihar Prasad v. Commissioner of Income-tax [1953] 23 I.T.R. 301. In this case the Income-tax authorities held that the trading account maintained by the assessee did not show his true profits and estimated that a sum of ₹ 15,644 should be added as profit to the amount shown in the books of account. They also held that a sum of ₹ 85,000 shown as cash credits in the personal ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... own, they are legally sustainable. The position will be different if the cash credits also were treated as part of the undisclosed profits of the same business. It will not be permissible for him to estimate the gross profits from the business and again to add to it the cash credits shown in the books in some disguise, as part of the income of the same business. We are in respectful agreement with their view. In the case of Auddy and Brothers v. Commissioner of income-tax [1955] 28 I.T.R. 713, 722 what is meant by income from undisclosed sources was considered in these terms: Taking up the question on its merits, it is pertinent to enquire what income from undisclosed sources means, popularly speaking, it may mean income from an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax authorities it does not follow that an assessee had no other source of income and the income which is found to be related to an undisclosed source must be the income from the assessee's business. It is true that their Lordships of the Patna High Court in the case of Ramcharitar Ram Harihar Prasad v. Commissioner of Income-tax [1953] 23 I.T.R. 301 inferred from the statement of case that the assessee had no other sources, but that is only a finding of fact and not a statement of law. In our opinion, where the Income-tax authorities find as a fact that certain income is from undisclosed sources, that is not a finding that, in the absence of any statement that the assessee has got other sources of income, he has no other source of inco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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