TMI Blog1975 (1) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... he accounts, it was found that the assessee had introduced cash amounting to Rs. 50,000 on April 1, 1959. The assessee explained that the amount was cash available on hand as on that date. The assessee was required to prove the existence of the cash of Rs. 50,000 as on April 1, 1959. He stated that during 1958, there were credits in the accounts of three individuals as under : Rs. 1. V. P. Velliangiri Gounder 30,000 2. Ramana Gounder 19,000 3. Champa Gounder 12,000 In the year ending March 31, 1959, it was the explanation given by the assessee, that the three persons were repaid their deposits, but that the amounts were still available with him for his use. The Income-tax Officer did not accept the credits in the name of Vell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned counsel for the assessee submitted that merely on the ground that his explanation was not acceptable, it cannot be held that the said sum of Rs. 14,025 was undisclosed income. In this connection, he relied on the decision of the Supreme Court in Commissioner of Income-tax v. Anwar Ali . In that case, the Supreme Court pointed out that proceedings under section 28(1)(c) are penal in character and that the burden is on the department to prove that a particular amount constituted the income of the assessee. The Supreme Court also held that if there is no evidence on record, except the explanation given by the assessee, which explanation has been found to be false, it does not follow that the receipt constitutes his taxable income. Mere rej ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in his account books. Further, if Champa Gounder's account has been looked into by the Income-tax Officer, it should be in evidence to show that either he had received the money on July 5, 1958, or did not receive at all. If there was an entry to the effect that on July 5, 1958, he had received the amount from the assessee in the account books of Champa Gounder, that will clearly go to show that the amount could not have been available with the assessee on April 1, 1959. Such an evidence also is not forthcoming. Therefore, apart from the explanation given by the assessee, which has been found to be not acceptable, there is no other positive evidence to show that Champa Gounder had been paid and the amount was not available with the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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