TMI Blog1967 (8) TMI 132X X X X Extracts X X X X X X X X Extracts X X X X ..... 1957-58; and the accounting period, the 12 months ended on 31.3.1957. The question referred is: Whether on the facts and in the circumstances of the case, the assessment of ₹ 18,000/- as assessee's income was not justified. 3. The assessee has not been assessed under the Indian Income-tax Act, 1922, before 1957-58, the assessment year with which we are concerned. The incident which forms the basis for the assessment of ₹ 18,000/- as the income of the assessee during the 12 months ended on 31.3.1957 took place at the Olavakode Railway Station on 6-2-1957. On that day the excise authorities found on his person 260 tolas of gold and subsequently confiscated the same. It is the value of that gold that has been fixed at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed or accrued during the previous year, that it was the duty of the Department to adduce evidence to show from what source the income was derived and why it should be treated as concealed income. In the absence of such evidence, it is argued, the finding is erroneous. We are unable to agree. It then dealt with the rejection of the two explanations offered by the assessee and continued: When both these explanations were rejected, as they have been, it was clearly open to the Income-tax Officer to hold that the Income must be concealed income. There is ample authority for the position that where an assessee fails to prove satisfactorily the source and nature of certain amount of cash received during the accounting year, the Income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be the income of the assessee of such financial year. Sundaram's Comment on this section - and section 68 which deals with cash credits - is instructive: Sections 68 and 69 which find their places for the first time in the new Act codify a large number of rulings to that effect. They merely restate the rule of evidence that, because the assessee alone can explain certain facts and he either offers no explanation or his explanation is unsatisfactory, an inference may be drawn against him, viz. that the items represent his concealed profits which are taxable. It is for the assessee to prove the source and nature of a receipt and if he fails to do so, it is open to the department to assume that the item is income. (Ninth Edition ..... X X X X Extracts X X X X X X X X Extracts X X X X
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