Documentary proof of source and ownership can defeat additions as undisclosed income when the department cannot disprove the explanation.

Documentary evidence can rebut an addition as undisclosed income where the assessee explains the source of funds with bank certificates and foreign assessment records showing pre-migration withdrawals and available balances. On those facts, the deposit with Bank of Baroda was treated as money brought into India on migration, and the addition was deleted. A further estimated amount said to have been earned in the wife's name could not be taxed in the assessee's hands because the record showed the funds belonged to her and there was no valid basis for attribution. The disputed additions were therefore unsustainable.

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Issues: (i) Whether the sum of Rs. 1,45,000 deposited with the Bank of Baroda, Gwalior was assessable as income from undisclosed sources. (ii) Whether the sum of Rs. 8,000 alleged to have been earned in the name of the assessee's wife could be included in the assessee's income.

Issue (i): Whether the sum of Rs. 1,45,000 deposited with the Bank of Baroda, Gwalior was assessable as income from undisclosed sources.

Analysis: The assessee produced bank certificates and Pakistani assessment records showing that he had sufficient funds in Pakistan and had withdrawn money from his bank account before migration. The evidence supported the explanation that the deposit represented money brought to India on migration. The Board's circular relating to migrant assessees was considered but found inapplicable on the facts, yet the documentary material was accepted as satisfactorily explaining the source of the deposit.

Conclusion: The addition of Rs. 1,45,000 was unjustified and was deleted in favour of the assessee.

Issue (ii): Whether the sum of Rs. 8,000 alleged to have been earned in the name of the assessee's wife could be included in the assessee's income.

Analysis: The appellate record in the wife's case showed that the funds standing in her name were held to be her own money and the addition made in that case had been disapproved. In the absence of a valid basis to attribute that amount to the assessee, the estimated sum of Rs. 8,000 could not be sustained in his hands.

Conclusion: The addition of Rs. 8,000 was deleted in favour of the assessee.

Final Conclusion: Both disputed additions were held unsustainable, and the assessee succeeded in full.

Ratio Decidendi: Documentary evidence establishing the source of funds and ownership of monies in the hands of another person can rebut an addition as undisclosed income where the department fails to disprove the explanation.

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