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TMI Blog1967 (7) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... ntries, two in November, 1956, one in February, 1957, and the last in March, 1957, were found entered in the accounts against certain named persons. On each of the corresponding dates of credits, the cash balance in the books was far less than them. The assessee's explanation was that the credits were received from certain businessmen from North India, who came to Madras for making purchases, and, while en route to Pondicherry, deposited the sum with the assessee for safe custody. But the assessee failed to furnish the address of the parties. Relying on this fact and the other that the cash balance on each of the dates on which there was credit entry was much less than the deposit received, the Income-tax Officer declined to accept the expl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concealed the particulars of such income or deliberately furnished inaccurate particulars of such income. We do not think that we can accede to such a broad proposition. The gist of the offence under section 28(1)(c) is concealment of the particulars of the assessee's income or deliberately furnishing inaccurate particulars of such income. The question in each case will be whether there is material to find such a concealment or deliberate furnishing of inaccurate particulars. Where credit entries are found in the account books of the assessee which are not explained by him to the satisfaction of the Income-tax Officer, addition as undisclosed income on the basis of peak credit may well be justified. Such income, when added, is certainly in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the department must establish that the receipt of Rs. 15,203 constitutes ' income ' of the assessee. There is not an iota of evidence on the record except the explanation given by the assessee, which explanation has been found to be false." We are in agreement with the principle of these observations, that is to say, that a finding of concealment or furnishing of inaccurate particulars cannot be founded merely on the fact that a certain explanation in regard to credits in the account has been offered by an assessee, which the revenue is not prepared to accept. Something more must be established, and that is, that the elements required to constitute an offence under section 28(1)(c) are present. Mr. V. Balasubrahmanyan, for the revenue, sa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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