TMI Blog1979 (10) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... n respect of his share income from a partnership business for the assessment year 1969-70, his capital account in the books of the firm, M/s. Baldeo Prasad Basudeo Prasad, in which he was a partner, indicated a cash deposit of Rs. 25,500. The assessee explained the source of the said cash deposit to be the share of his income from a joint venture with one Baleshwar Prasad. The assessee's share from the said joint venture was Rs. 38,500. The ITO now assessing the assessee's income for the assessment year 1969-70, besides assessing the share income of the assessee from the said firm, added Rs. 38,500 as the assessee's income from undisclosed sources. The accounting period taken for the purpose of the said assessment for the said assessment ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stakes of fact which had crept in the Tribunal's order. One such was that the Tribunal had observed that the AAC had found as a fact that the said sum of Rs. 38,500 had been received by the assessee during the year under appeal. According to the assessee, no such finding had been given by the AAC in his order. The Tribunal, agreeing with the assessee's contentions, rectified that mistake, but all the same observed that so far as the Tribunal's order was concerned, it did not get affected by that rectification. It is on these facts that the aforesaid question of law has been referred for the opinion of this court. Mr. Jain, appearing for the petitioner-assessee, has urged that admittedly the sum of Rs. 38,500 had been treated as the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been made in terms of s. 68 of the Act. We will first clarify a mistake which has been committed by the department while adding the income from undisclosed sources. An income from undisclosed sources, if credited in the books maintained by the assessee, is liable to be assessed under s. 68 of the Act, but if such income from undisclosed sources, though invested, has not been recorded in the assessee's books of accounts, such investment is liable to be assessed in terms of s. 69 of the Act. Now, in the instant case, the income from undisclosed sources, which is said to have been earned by the assessee, was admittedly not credited in the books of account maintained by him, but part of it had been invested in the firm in which he was a partn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e books of account maintained by the assessee would be assessable for the previous year on which the accounts closed, but where income from undisclosed sources is invested elsewhere which are not found credited in the assessee's account, the previous year for assessing such undisclosed income will still be the financial year. Mr. Rajgarhia referred to a decision of this court in the case of CIT v. Meghu Sao Jhandhu Sao [1955] 27 ITR 371 for the proposition that income from disclosed sources could be assessed for the previous year relevant to the business accounting year. Possibly this decision would not have been cited by him if he had only noticed that the amount which was assessed in the previous year relevant for the business accountin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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