De novo assessment on cash credits upheld where section 68 issues remained open for fresh examination.

The Tribunal's remand for de novo assessment was upheld because it left the cash credits and the applicability of section 68 open for fresh examination by the Income-tax Officer. The Court held that the Revenue suffered no prejudice from the direction for a complete reappraisal, as all relevant aspects could still be investigated in the fresh proceedings. The deletion of the direction to treat the entire cash credits as undisclosed income was therefore sustained, and the reference petitions were dismissed.

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Issues: Whether the Tribunal was justified in deleting the direction to treat the entire cash credits as undisclosed income under section 68 and in restoring the matter for de novo assessment.

Analysis: The Tribunal had directed a fresh assessment after complete investigation, leaving the entire matter open before the Income-tax Officer, including the applicability of section 68 to the cash credits. The Court found that the remand preserved the Revenue's ability to have all relevant aspects examined in the de novo proceedings and that no prejudice was caused by the Tribunal's course.

Conclusion: The Tribunal's order was upheld and the reference petitions were dismissed.

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