| Case ID |
02b1491e-ef14-4ced-908a-ae612cf4309e |
| Body |
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| Case Number |
CIVIL APPEAL No. 740 OF 1966 |
| Decision Date |
Aug 22, 1968 |
| Hearing Date |
|
| Decision |
The Supreme Court allowed the appeal of the Commissioner of Income Tax, discharging the High Court's finding on the first question and stating that the amount of Rs. 2,20,000 received by the assessee constituted income from undisclosed sources. The court reiterated the principle that once a receipt is found to be income, it is not necessary for the revenue to locate its exact source. The Supreme Court concluded that the assessee failed to prove that the demand drafts represented income that was not chargeable to tax, thereby affirming the Tribunal's finding which supported the assessment made by the Income Tax Officer. |
| Summary |
In the landmark case of Commissioner of Income Tax v. Durga Prasad More, the Supreme Court addressed critical issues regarding income taxation under the Income-tax Act, 1961. The case revolved around the assessment year 1945-46, where the assessee, Durga Prasad More, was assessed as a resident and ordinarily resident of British India. The Income Tax Officer added Rs. 2,20,000 to the total income, which was remitted from Nawalgarh, Rajasthan to Calcutta. The main contention was whether these funds represented income from undisclosed sources. The Supreme Court clarified that the mere rejection of the assessee's explanation that the funds were part of a cash balance was sufficient to conclude that the income was taxable. The court emphasized the importance of the taxpayer's duty to disclose worldwide income and the principle that once income is established, the source need not be pinpointed. This case serves as a significant reference for understanding the tax obligations of residents and the treatment of undisclosed income in Indian law. Keywords: income tax, undisclosed sources, Supreme Court, taxation law, Indian Income-tax Act. |
| Court |
Supreme Court of India
|
| Entities Involved |
Not available
|
| Judges |
J.C. SHAH,
V. RAMASWAMI,
A.N. GROVER
|
| Lawyers |
T.A. Ramachandran,
R.N. Sachthey,
B.D. Sharma,
M.C. Chagla,
H.K. Puri,
B.N. Kirpal
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
Durga Prasad More
|
| Citations |
1969 SLD 344,
(1969) 72 ITR 807
|
| Other Citations |
CIT v. M. Ganapathi Mudaliar [1964] 53 ITR 623 (SC)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
4
|