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TMI Blog1979 (3) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... ... 7,000 (b) Loan account of J. N. Ganguly on 5-1-61 ... 10,000 16-2-61 ... 12,000 3-3-61 ... 12,500 4-4-61 ... 3,500 ------------ 38,000 Withdrawn on 14-6-61 ... 12,000 29-9-61 ... ... Deposited on 31-10-61 ... 9,500 5-12-61 ... 8,500 31-12-61 ... ... Balance ... 22,000 Save for Rs. 9,500 deposited on the 31st October, 1961, the assessee failed to explain the other cash credits and the ITO added the same as income from undisclosed sources. Being aggrieved the assessee appealed to the AAC who confirmed the order of the ITO. On further appeal before the Income-tax Appellate Tribunal, the assessee asserted the genuineness of the said loans and further urged that the credits appearing prior to the 1st April, 1961, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 961, could not be charged to income-tax for the assessment year 1962-63 ? " Mr. Suhas Sen, learned counsel for the revenue, contended before us, that the provisions of the Act of 1961 were applicable to the assessment. He urged that the assessment proceedings were not pending when the said Act came into force and the assessee filed its return on the 26th June, 1963, long after the said Act came into force. The assessment was completed under s. 143(3) of the said Act without any objection by the assessee and the applicability of the said Act to the assessment was accepted. Mr. Sen further urged that the financial year of the assessee ended on the 31st December, 1961, and under s. 3(1)(b) of the Act of 1961, the previous year of the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt were based on the interpretation of the relevant provisions of that Act and there was no question at all as to the applicability of the Act of 1961 or interpretation of any of its provisions. Mr. Sen further submitted that he did not dispute that if the 1922 Act applied, the cash credits would be assessable in the ordinary financial year, but under the Act of 1961, the position would be different. In support of his contentions Mr. Sen referred to the following observation of the Supreme Court in Baladin Ram's case [1969] 71 ITR 427, 432 : Mr. Manchanda has called our attention to section 68 of the Income- tax Act, 1961, according to which where any sum is found credited in the books of an assessee maintained for any previous year a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , for which the relevant previous year ended on the 31st March, 1961, and under the Indian I.T. Act, 1922. We are unable to accept the contentions of Mr. Roy Chowdhury. In this case assessment for the year in question was not pending when the Act of 1961 came into force and the return was filed on the 26th June, 1963, long after the said Act came into force. Under s. 297(2)(b) of the Act of 1961, the assessment had to be made here in accordance with the procedure specified in the later Act. Accordingly, the assessment was made under s. 143(3) thereof in the assessment year 1962-63. This was accepted by the assessee without any objection and it would be deemed to have exercised its option by implication under s. 3(1)(b) of the Act of 1961 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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