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Issues:
1. Addition of Rs. 5,61,000 to the income under 'Income from undisclosed sources' for the assessment year 1981-82. 2. Establishment of the identity of Shri Narinder Kumar Naval Kishore in relation to the remittance of funds. 3. Burden of proof regarding unexplained investment or cash credit not being discharged by the assessee. Analysis: Issue 1: The assessee, employed in Lakshmi Jewellery, Coimbatore, filed a return of income admitting Rs. 4,730 as total income for the assessment year 1981-82. The Income-tax Officer added Rs. 5,61,000 as undisclosed income, based on draft applications for remittance to R. B. Traders, Amritsar. The assessee claimed he signed the applications to help an unknown person staying in a lodge behind his shop, denying actual remittance. The Commissioner (Appeals) and the Appellate Tribunal upheld the addition, stating the assessee failed to prove the source of the amount, leading to the assessment of Rs. 5,61,000 as income from undisclosed sources. Issue 2: The Tribunal found the explanation regarding the funds belonging to Narinder Kumar Naval Kishore unsubstantiated due to the lack of established identity. The Tribunal deemed the assessee as the owner of the remitted amount, rejecting the claim of remitting the funds on behalf of another individual. The assessee contended that the Income-tax Officer did not investigate the true ownership of the funds and argued against the applicability of section 69A of the Income-tax Act. Issue 3: The High Court observed that the Income-tax Officer failed to conduct a thorough investigation to ascertain the actual owner of the remitted funds. Merely signing the draft application forms did not establish the assessee's ownership of the funds. The Court emphasized the need for the Income-tax Officer to determine the true source and ownership of the remitted amount, directing a reevaluation by the Appellate Tribunal with a specific instruction to investigate further. The Court highlighted the inadequacy of the initial investigation and emphasized the importance of establishing ownership conclusively before attributing the funds to the assessee. In conclusion, the High Court directed a fresh consideration by the Appellate Tribunal, stressing the necessity for a detailed investigation to determine the rightful owner of the remitted funds, emphasizing the significance of conclusive evidence in establishing ownership before making additions to the assessee's income from undisclosed sources.
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