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TMI Blog1984 (12) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... from undisclosed sources, were added to the assessee's income. The first sum of Rs. 93,000 was received from M/s. Dalmia Cement and Paper Marketing Co. Ltd. and the second sum of Rs. 5,51,400 was received from M/s. R. K. Relhan Co., Stock Brokers. The assessee's explanation that the first sum was received as a result of debit notes and the second sum was received as a result of the sale of the shares of the Lahore Electric Supply Co. Ltd. was rejected. The Appellate Assistant Commissioner sustained the addition. The following question has been referred to us under section 256(1) of the Act: " Whether, on the facts and in the circumstances of the case, the Tribunal was legally correct in holding that section 68 of the Income-tax Act, 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the effect that if there is any undisclosed credit in the account for which the explanation is not accepted by the Income-tax Officer, then the amount has to be treated as the income of that year. It so happened that the accounting year corresponding to the assessment year 1953-54 was the period ending on September 30, 1952. All the entries relating to the sum of Rs. 93,000 and Rs. 5,51,400 were made after September 30, 1952. They were in the books relating to the accounting period relevant to the assessment year 1954-55. The conclusion of the Income-tax Appellate Tribunal was that these two sums were to be added, if at all, in the income relating to the assessment year 1954-55 and not 1953-54. As noted already, the appeal was decided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd not taxed according to the previous accounting period or the previous year of the assessee. In other words, although the entries were made after the close of the accounting year of the assessee, as they were made in the financial year ending on March 31, 1953, they had to be taxed, if at all, for the financial year 1953-54. There is obviously a change in the new Act. It so happened that this change was also discussed by the Supreme Court in the said judgment. It was noted that if there were entries, then section 68 would make the entries chargeable to tax in the assessment year relevant to the previous year of the assessee, i.e., the accounting year. But, if there were no entries, then probably even tinder the new Act, the financial ye ..... X X X X Extracts X X X X X X X X Extracts X X X X
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