TMI Blog1978 (11) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... r the subsequent assessment year 1961-62, the ITO noticed certain cash credits in the assessee's books of account, appearing in the names of different parties. The dates of the said credits fell within the financial year corresponding to the assessment year 1960-61. The ITO noticed that no ledger accounts were maintained in respect of such transactions and the entries in the cash book had been squared up in the cash book itself. Accordingly, the ITO initiated proceedings under s. 147(a) of the Act for the assessment year 1960-61. In the said proceedings, on examination of the creditors, it was found that the alleged source of their funds in most of the cases were sale proceeds of ornaments belonging to their wives or mothers, which were a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... subsequent Gujarati Dewali year 2016, in which the said transactions appeared in the assessment for the assessment year 1960-61. It was also contended that the creditors having admitted the transactions, the assessee had discharged its onus of proving the cash credits. It was contended on behalf of the revenue on the other hand that inasmuch as the said credit items were found to be income from undisclosed sources the assessee should have disclosed the same in the return for the assessment year 1960-61. Having detected the said items in the assessment for the subsequent year, the ITO was fully justified in initiating the proceedings under s. 147(a). It was also contended that the creditors had failed to substantiate the source of these cred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sel for the assessee, has contended before us that the ITO had no jurisdiction to initiate proceedings under s. 147(a) inasmuch as the only circumstance before the ITO was non-disclosure cash credits of the subsequent accounting period. He stated that it was not possible nor proper for the assessee to make disclosures in respect these items and, therefore, there could not have been any reasonable grounds for the ITO to believe that any income had escaped assessment. Mr. Dutt, however, did not dispute that the law was that if any concealed income of any assessee was detected then the financial year in which the said concealed income would arise would determine the assessment year in which the assessee would be assessed to tax for such conc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessment year 1945-46, return of the minor's income had been submitted by the minor's father showing a share income from another concern. The interest income, however, from the said concern was shown in the account of the father. Subsequently, it was held on a reference that the interest income could not be assessed in the hands of the father. Thereafter, the ITO issued a notice under s. 34 of the Act to the assessee and completed the reassessment. An objection was taken thereafter by the assessee that the ITO wrongly initiated proceedings under s. 34 inasmuch as he knew that the income belonged to the assessee but chose to assess it in the hands of the father. The Tribunal rejected this contention and held that the assessee had not dis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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