| Case ID |
233205a7-6136-48d8-adee-f0c6e7f7173e |
| Body |
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| Case Number |
D-2741 of 1984 |
| Decision Date |
|
| Hearing Date |
Aug 17, 1984 |
| Decision |
The Tribunal held that the assessee failed to prove that the amount of Rs. 75,000 belonged to the firm, Madhu Sweets, of which he was a partner. The burden was on the assessee to trace the undisclosed income to the firm, which he failed to do. Consequently, the Tribunal affirmed the Assessing Officer's decision to treat the amount as income from undisclosed sources. The High Court found that the question of whether the sum belonged to the assessee or the firm was purely a question of fact and did not give rise to any question of law. |
| Summary |
In the case of Birendra Singh v. Commissioner of Income Tax, the Karnataka High Court dealt with the issue of unexplained moneys under Section 69A of the Income-tax Act, 1961. The case arose when a search conducted at the residence of the assessee revealed cash and bank deposits. The assessee claimed that a portion of the seized cash belonged to a firm he was associated with, but this explanation was rejected by the Assessing Officer. On appeal, the Tribunal upheld the decision of the Assessing Officer, stating that the burden was on the assessee to prove the source of the funds, which he failed to do. The ruling emphasized the importance of disclosing the source of income and established a precedent regarding the responsibilities of partners in a firm when facing allegations of undisclosed income. This case highlights the intricacies of tax law and the necessity for thorough documentation in financial matters, making it relevant for both tax practitioners and individuals involved in business partnerships. |
| Court |
Karnataka High Court
|
| Entities Involved |
Not available
|
| Judges |
G.C. Bharuka,
A.V. Srinivasa Reddy
|
| Lawyers |
Smt. Gayathri,
K.R. Prasad,
M.V. Seshachala
|
| Petitioners |
Birendra Singh
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
2002 SLD 2586 = (2002) 256 ITR 696
|
| Other Citations |
Parimisetti Seetharamamma v. CIT [1965] 57 ITR 532 (SC)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
69A
|