TMI Blog1983 (3) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... on the facts and circumstances of the case, the unexplained investment and the unexplained possession of money to the extent of Rs. 20,000 could be subjected to tax in the hands of the assessee during the A.Y. 1973-74 ? " The reference relates to the assessment year 1973-74. The relevant previous year of the assessee was from 19th October, 1971, to 5th November, 1972. The ITO made an addition o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich he showed in his possession on 18th October, 1971. The investments of Rs. 2,900 and Rs. 14,000 were made out of this amount of Rs. 20,000 and it is this amount of Rs. 20,000 which has been added as the income for the assessment year 1973-74. The argument of the learned counsel for the assessee is that having regard to the scheme of ss. 68, 69 and 69A in the new Act, the income should have be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not recorded in the books of account. In the instant case, the provision which appears to be applicable is s. 69A, because unexplained money amounting to Rs. 20,000 was found in the possession of the assessee on 18th October, 1971, on the basis of a statement which he submitted along with the return for the year 1972-73. The investments were made out of this amount. Thus, the assessee was foun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder: [see Kanga and Palkhivala's The Law of Income Tax, Vol. I, p. 1160]. The question was, therefore, properly referred by the Tribunal. For the reasons given above, our answer to the question is that the unexplained possession of money to the extent of Rs. 20,000 could not be subjected to tax in the hands of the assessee during the assessment year 1973-74. There will be no order as to costs o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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