TMI Blog1984 (8) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... to a sum of Rs. 61,950. This investment was held to have been met out of the assessee's income from sources not disclosed and hence assessed under other sources. In doing so, the assessing authority had rejected the explanation of the assessee that he had utilised for the construction work a sum of Rs. 30,000 as having been given to him by his father. Similarly, the cash credits of Rs. 16,000 in the name of certain creditors was also held to be only a camouflage and as such the said amount was also found to be the assessee's income from undisclosed sources. Accordingly, the assessing authority treated the aforesaid amounts as income from other sources and added them back while determining the total assessable income at Rs. 1,53,021. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellate Tribunal is right in law in allowing the additions of Rs. 19,950 and Rs. 16,000 to be set off against the intangible additions made in the earlier years ? " The Tribunal dismissed the petition holding that it was not a question of law arising out of the order of the Tribunal. The Revenue thereupon filed O.P. No. 888 of 1977-E before this court under s. 256(2). Pursuant to the direction of this court, the above question, at the instance of the Revenue, has been referred to this court. That is how the Revenue is before us. Counsel for the Revenue submitted that the alternative contention raised by the assessee that the unexplained income was covered by the intangible additions made to the income of the assessee in the immediately ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erience guarantees that an assessee, who has been dishonest in one assessment year is bound to be honest in a subsequent assessment year. It is a matter for consideration by the taxing authority in each case whether the unexplained cash deficits and the cash credits can be reasonably attributed to a pre-existing fund of concealed profits or they are reasonably explained by reference to concealed income earned in that very year. In each case, the true nature of the cash deficit and the cash credit must be ascertained from an overall consideration of the particular facts and circumstances of the case. Evidence may exist to show that reliance cannot be placed completely on the availability of previously earned undisclosed income. A number of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a fund cannot, in all cases, imply that the assessee has not earned further secret profits during the relevant assessment year ". That means it is for the assessee to establish that he has not earned any secret profits during the relevant year and that the investment and also the credits found in the accounts in the names of certain persons flowed from the intangible additions made in the preceding year. The Tribunal has not considered the issue in the manner suggested by the Supreme Court in Anantharam Veerasinghaiah's case [1980] 123 ITR 457 (SC) mentioned above. The finding of the Tribunal, therefore, cannot be upheld. The counsel for the assessee cited at the bar the following decisions, CIT v. Manick Sons [1969] 74 ITR 1 (SC), Kuppu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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