9911796707
TMI Blog1981 (4) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... 5,000. There were similar declarations on behalf of the assessee's four minor children each in respect of a sum of Rs. 5,000. As required by the Finance Act, above referred to, these declarations were accepted by the CWT and taxes were paid in accordance therewith as contemplated by s. 24 of the said Finance Act. In the books of the assessee for the financial year 1966-67 relevant to the assessment year 1967-68 five credits appeared each in respect of Rs. 5,000 in the names of the wife and minor children of the assessee. Two of these credits appeared in April, 1966, and the rest in July, 1966. When called upon to explain the nature and source of the above credits the assessee relied upon the disclosures that had been made under the Finance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance (No. 2) Act of 1965 was concerned, the Tribunal was of opinion that the view taken by the AAC was not correct. According to the Tribunal in respect of such declarations it was open to the ITO to examine the explanation put forward by the assessee in respect of the cash credits and to take appropriate action. However, the Tribunal was of opinion that so far as the present case was concerned it was not necessary to examine the facts from that angle because the assessee was entitled to succeed on the other aspect. The Tribunal pointed out that the declarations in question had (been made: before March 31, 1966 The amounts in question, therefore, had seen the, light of the day some time on or before March 31 , 1966 In this view of the matte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all open to the Department to examine the genuineness of the deposit afresh in the case of the present assessee though he was not a declarant under the Finance Act. This aspect of the matter has been examined at great length in two decisions of this court in the cases of Rattan Lai v. ITO [1975] 98 ITR 681 and Shakuntla Devi v. CIT [1980] 125 ITR 18. There is no doubt a conflict of judicial opinions in regard to this aspect and this court has taken a view different from that taken by certain other High Courts. However, the decision of this court in the earlier matters is binding on us and we would therefore, answer this issue in favour of the assessee following our own-earlier decisions' The first question is, therefore, answered in the ne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t these fans have been introduced in the books of account subsequently in the course of the financial year. 1966-67. But once the assessee is able to establish that these funds were in existence even on March 31, 1966, or earlier, it is clear that the amounts cannot be brought to tax in the assessment year 1967-68. To give a simple illustration, suppose there is a cash credit in the books of an assessee on April 2, 1966. If the assessee is unable to explain Satisfactorily the nature and source of that, credit, it could be taxed as the undisclosed income of the assessee for the assessment year 1967-68. But suppose, though, the assessee is unable to explain the nature of: the funds and how he came in possession thereof, he is able to show tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t away or utilised otherwise and there was nothing to show that these were the amounts which were credited in the assessee's books. There are two answers to this contention: one is that this is a question of fact. The ITO, the AAC and the Tribunal have all proceeded on the footing that the credits are referable to the amounts declared under the Finance (No. 2) Act of 1965. The second is that no objection has been taken by the Department at any stage pointing out that possibly the cash credits may not be referable to the declarations made. It was an appeal by the Department before the Tribunal and in reply to the assessee's contention that the amounts had seen the light of day even prior to March 31, 1966, the Department must have contended ..... X X X X Extracts X X X X X X X X Extracts X X X X
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