Appellate power to fix the correct assessment year upheld where disputed income was treated as undisclosed-source income.

The Tribunal's appellate powers under section 33(4) were wide enough to determine the correct year of assessment when the assessee itself contended that, if the disputed amount was taxable, it belonged to an earlier year. Fixing the year of taxability was not an extraneous issue or an impermissible enhancement, but a necessary step in deciding that contention. The amount was also treated as income from an undisclosed source, which was referable to the relevant previous year. The Tribunal was therefore justified in recording that the amount was taxable as income of the accounting year 1943-44, and the answer was against the assessee.

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Issues: Whether the Appellate Tribunal was justified in holding that the assessee had failed to account for the source of the disputed amount and in observing that the amount was taxable as income of the accounting year 1943-44.

Analysis: The Tribunal had before it a specific contention that if the amount was taxable, it could not be brought to tax in the assessment year 1945-46 but belonged to the earlier year, and its appellate powers under section 33(4) of the Income-tax Act were wide enough to determine the proper year of assessment on the issues raised. The finding as to the year of taxability was not an extraneous matter or an impermissible enhancement, but a necessary step in deciding the assessee's own contention. The order also proceeded on the basis that the amount represented income from an undisclosed source, and income of that kind is normally referable to the relevant previous year.

Conclusion: The Tribunal was justified in recording the finding and in stating that the amount was to be brought to tax as income of the accounting year 1943-44. The answer was in the affirmative, against the assessee.

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