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TMI Blog1970 (11) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... ?" M/s. Parameswara Oil Mill, Chaluvadi Gurunadham & Co., Nellore (hereinafter referred to as "the assessee"), was assessed for the assessment year 1960-61 corresponding to the official year ending with March 31, 1960, as a registered firm. The assessee-firm was carrying on the business of an oil miller in purchasing groundnuts, decorticating them, crushing the kernel into oil and cake and selling the same. The Income-tax Officer found cash credits in the account of one of the partners, C. Kannaiah. The peak credit of Rs. 13,189 was found on October 10, 1959. The source of the credits was not satisfactorily explained. Hence, the Income-tax Officer was of the view that there was an inflation in the purchase price recorded by the assessee a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner had no jurisdiction to add a sum of Rs. 13,189 as income under the head "Undisclosed sources" because it constituted a new source of income. This contention of the assessee did not find favour with the Tribunal which dismissed the appeal. Hence this reference. Sri Gangadhara Rao, for the assessee, contends that the Appellate Assistant Commissioner has no jurisdiction to make an addition of Rs. 13,189 as income from undisclosed sources on the ground that it constituted a new source. This claim of the assessee is opposed by Sri P. Rama Rao, standing counsel for the income-tax department, contending, inter alia, that the Appellate Assistant Commissioner is having ample power and jurisdiction to decide all the items which were the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assistant Commissioner has been constituted a revising authority against the decisions of the Income-tax Officer; a revising authority not in the narrow sense of revising what is the subject-matter of the appeal, not in the sense of revising those matters about which the assessee makes a grievance, but a revising authority in the sense that once the appeal is before him he can revise not only the ultimate computation arrived at by the Income-tax Officer but he can revise every process which led to the ultimate computation or assessment. In other words, what he can revise is not merely the ultimate amount which is liable to tax, but he is entitled to revise the various decisions given by the Income-tax Officer in the course of the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icer on the ground that there was inflation in the purchase price of groundnuts by the assessee. Though the Appellate Assistant Commissioner, on the material before him after remand, has arrived at a conclusion that there was no inflation in the purchase price of groundnuts, still it was open to him to sustain the addition of the cash credit of Rs. 13,189, the source of which has not been properly and satisfactorily explained by the assessee, as income of the assessee under the head "Undisclosed sources". This source is not business source but it falls under a different and distinct head "Undisclosed sources". The undisclosed income from a known or disclosed source is distinct and different from an undisclosed source, though there may be un ..... X X X X Extracts X X X X X X X X Extracts X X X X
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