Burden of proof for cash found in possession: assessee must trace source to another entity or face undisclosed-income addition.

Cash found in an assessee's possession was treated as income from undisclosed sources because the assessee failed to prove that the money belonged to a firm in which he was a partner. The burden lay on the assessee to establish the source of the cash and trace it to that firm, and the Tribunal found that burden was not discharged. The dispute turned on appreciation of facts rather than a legal question, so the factual finding sustained the addition as undisclosed income and no question of law arose from that conclusion.

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Issues: Whether the sum of Rs. 75,000 found in the assessee's possession was rightly treated as income from undisclosed sources under section 69A of the Income-tax Act, 1961.

Analysis: The assessee's explanation that the amount belonged to the firm in which he was a partner was disputed by the Department. In such a situation, the assessee had the burden to establish the source of the money and to trace the amount to the firm. The Tribunal found that this burden was not discharged. The dispute whether the amount belonged to the assessee or to the firm turned on appreciation of facts, and no question of law arose from that finding.

Conclusion: The addition of Rs. 75,000 as income from undisclosed sources was upheld and the reference was answered against the assessee.

Ratio Decidendi: Where an assessee claims that cash found in his possession belongs to another source, the burden lies on the assessee to prove that source, and a Tribunal's factual finding that such burden was not discharged does not give rise to a question of law.

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