TMI Blog1976 (10) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... in lands made by the assessee during the year ended March 31, 1962, relevant to the assessment year 1962-63, came from out of the intangible additions made in the assessments of the firm in which the assessee was a partner?" The assessee in this case invested a sum of Rs. 10,000 in certain lands in the name of his wife on June 16, 1961, and another sum of Rs. 10,000 in his own name on July 6, 1961. When the assessee was called upon to explain the source of these amounts the assessee stated that he was a partner of M/s. K. K. Subramania Mudaliar and in the assessment of the partnership additions were made by the Income-tax Officer from 1959-60 onwards and out of those additions his share would be Rs. 32,567 and with that amount, the incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dence on record to show that these intangible additions flowed back into the books of the assessee's firm in any other manner and there was also no evidence of any other investments made by the firm itself outside the books of account. Consequently, the view of the Tribunal was that in the absence of any such material pointing to the use of the funds by the firm itself, the estimated additions made in the firm's assessment must be treated as real income in the hands of the partners on the ratio of the decision of this court in Kuppuswami Mudaliar v. Commissioner of Income-tax [1964] 51 ITR 757 (Mad). We are clearly of the opinion that this conclusion of the Tribunal is unexceptionable. One argument that was advanced before the Tribunal an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed in that judgment. We are unable to accept this contention. In the judgment referred to above, we dealt with a case where cash credits were found in the names of third parties and the assessee, not being in a position to explain those credits, wanted to call upon the ratio of Kuppuswami Mudaliar v. Commissioner of Income-tax [1964] 51 ITR 757 (Mad) as if it laid down an universal principle of law to the effect that whenever an assessee is not able to explain the cash credits standing in the names of the third parties, he could fall upon Kuppuswami Mudaliar's case [1964] 51 ITR 757 (Mad) as if it were the residuary refuge for such assessee. What we stated in that judgment is not in any way opposed to what the Tribunal has held in the pres ..... X X X X Extracts X X X X X X X X Extracts X X X X
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