1984 (11) TMI 127 - AT - Income Tax

Summary

Issues:
Assessment of income from undisclosed sources and income earned in the name of the assessee's wife.

Analysis:
The appellant, an individual who migrated from Pakistan to India, contested the addition of Rs. 1,45,000 as income from undisclosed sources and Rs. 8,000 as income earned by his wife. The appellant argued that the IT authorities had no justification for these additions. The appellant's counsel referred to a circular by the Board regarding assessments of migrant assesses, claiming that the funds brought from Pakistan should have been accepted without strict evidence requirements. Additionally, the counsel argued that the assessment of income earned by the wife was based on conjectures, citing a previous order regarding the wife's income. The Departmental Representative countered, stating that the circular did not apply due to existing income sources in India and questioned the reliability of the presented evidence.

The Tribunal reviewed the submissions and evidence. Despite the delay in producing certain documents, the Tribunal accepted them as genuine, including certificates from the United Bank Ltd. in Pakistan confirming the appellant's funds. The Tribunal found that the appellant had sufficient funds in Pakistan, which were brought to India upon migration. The Tribunal also noted that the appellant had informed the IT authorities promptly about the funds. Based on the evidence from Pakistan and the appellant's business activities there, the Tribunal concluded that the addition of Rs. 1,45,000 as undisclosed income was unjustified.

Regarding the Rs. 8,000 income attributed to the wife, the Tribunal referenced an earlier order concerning the wife's funds, which had been deemed her own money. As the AAC's decision on the wife's income had not been appealed, the Tribunal found no basis for assessing the Rs. 8,000 in the appellant's hands. The Tribunal agreed with the Departmental Representative that the circular did not apply to the appellant's case, ultimately allowing the appeal filed by the assessee.