| Case ID |
03f05389-3621-44f5-9e38-c2d8cff38364 |
| Body |
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| Case Number |
MISCELLANEOUS CIVIL CASE No. 362 OF 1976 |
| Decision Date |
Mar 21, 1978 |
| Hearing Date |
|
| Decision |
The Tribunal was justified in law in deleting the addition of Rs. 71,977 as the income of the assessee from undisclosed sources. The Tribunal concluded that the sum of Rs. 76,210 of intangible additions made to the income of the assessee during the preceding four assessment years could be available for investment in the assessment year in question. Thus, the source of investment of the disputed sum of Rs. 71,977 was satisfactorily explained by the assessee. The case was decided in favor of the assessee, confirming that past intangible additions were available for investment and should not be treated as income from undisclosed sources. |
| Summary |
The case revolves around Section 69 of the Income-tax Act, 1961, which addresses unexplained investments. The Income Tax Officer (ITO) had made an addition of Rs. 71,977 to the income of Sahu Brothers, asserting it came from undisclosed sources due to unaccounted cash purchases. However, the assessee argued that this amount should be considered as arising from intangible additions made in previous years, totaling Rs. 76,210. The Appellate Tribunal sided with the assessee, stating that the intangible additions from earlier assessments could reasonably be available for investment in the current assessment year. This decision is significant for tax law, emphasizing the availability of past income for current investment and the importance of considering prior intangible additions in assessments. This ruling strengthens the argument for advocates representing clients in similar tax disputes, highlighting the necessity of thorough documentation and historical income declarations in tax assessments. |
| Court |
Madhya Pradesh High Court
|
| Entities Involved |
Not available
|
| Judges |
G. L. OZA,
G.G. SOHANI
|
| Lawyers |
A.M. Mathur,
K.A. Chitaley
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
Sahu Brothers
|
| Citations |
1978 SLD 853 = (1978) 115 ITR 438
|
| Other Citations |
CIT v. Ram Achal Ram Sewak [1969] 73 ITR 501 (All.),
S. Kuppuswami Mudaliar v. CIT [1964] 51 ITR 757 (Mad),
CIT v. Shri Dinanath Dhawale (Misc. Civil Case No. 352 of 1970 dated 4-4-1972)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
69
|