1978 (2) TMI 3

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..... holding that the order under s. 23A of the Indian I.T. Act, 1922, was not justified in law. It appears that there was an addition of about Rs. 80,000 made by the ITO as from undisclosed sources. The ITO added these amounts on the ground that the alleged loans covering these amounts had not been proved satisfactorily. The assessee disputed that amount up to the Tribunal, but, before the Tribunal .....

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..... from undisclosed sources. Now, that cannot be the correct position, because the tax liability has to be computed on the income upholding the addition of Rs. 40,000 and not Rs. 80,000. After that tax liability has been computed, it will be possible to determine the question whether there was a distributable surplus and whether the order under s. 23A of the Indian I.T. Act, 1922, was not justified i .....

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