TMI Blog1980 (1) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... has referred the following question of law to this court for its opinion: " Whether, on the facts and in the circumstances of the case, the Tribunal was justified in giving a finding that the amount of Rs. 15,300 which was added as income from undisclosed sources, was covered by the intangible additions made to the income of the assessee ? " The material facts giving rise to this reference br ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... books of account of M/s. Daluram Pannalal. The ITO, therefore, held that the sum of Rs. 15,300 was the assessee's income from undisclosed sources and the assessee was assessed accordingly. The assessee preferred an appeal before the AAC, who reduced the turnover of the business carried on in the name of Gajanand Satyanarayan, to Rs. 5,00,000 and the profits therefrom to Rs. 50,000, but so far as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lication under s. 256(2) of the I.T. Act, 1961, to this court. That application was allowed and, as directed by this court, the Tribunal has stated the case and referred the aforesaid question of law to this court for its opinion. Having heard learned counsel for the parties, we have come to the conclusion that this reference should be answered in the negative and against the assessee. As held b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AAC or by the Tribunal. The Tribunal seems to assume that once the business income is estimated, the unexplained cash credits would be covered by the income so estimated. This assumption is not warranted by law. Without setting aside the finding of the ITO that the cash credits represented income from undisclosed sources, the Tribunal was not justified in holding that the amount of Rs. 15,300, whi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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