Known sources of income include disclosed lawful receipts when supported by records in disproportionate assets cases.

Receipts from gifts, loans, partition share and bequest may be treated as part of a public servant's known sources of income in a disproportionate assets prosecution when they are lawful, contemporaneously disclosed in the manner required by the applicable rules, and supported by reliable records. The Court treated proper intimation and documentary proof, including reflection in income tax returns, as material in assessing whether the assets were explained. On the facts, the receipts were not shown to be bogus or part of a device, so they had to be deducted from the alleged excess and the conviction could not be sustained.

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Issues: Whether the appellant's receipts by way of gifts, loans, partition share and bequest, which were contemporaneously intimated to the department and reflected in income tax returns, could be treated as part of his "known sources of income" so as to negate the charge of possession of disproportionate assets under the Prevention of Corruption Act, 1988.

Analysis: The expression "known sources of income" was understood to require not merely a lawful source but also proper intimation in accordance with the applicable law, rules or orders governing the public servant. The Court found that the amounts received by the appellant were proved by evidence, supported by contemporaneous documents, and were not shown to be bogus or part of a calculated device. The receipts were also reflected in the appellant's income tax returns. The relevant conduct rules did not create an absolute embargo on such receipts but regulated acceptance, borrowing and inherited property through reporting, sanction or permission requirements. On the facts, the amounts had been duly disclosed and should have been deducted from the alleged excess.

Conclusion: The impugned conviction could not be sustained and the appellant was entitled to acquittal.

Ratio Decidendi: Amounts received from lawful sources form part of "known sources of income" for the purpose of a disproportionate assets prosecution when they are contemporaneously disclosed in the manner required by the applicable rules and supported by reliable records.

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