Assessability of undisclosed income must follow the statutory previous year, and jurisdictional objections may be raised on appeal.

Income from undisclosed sources must be assessed only in the statutory previous year ending on 31 March immediately preceding the assessment year, so an assessee cannot choose a different accounting year. Where the receipts fell outside the relevant previous year for assessment year 1948-49, the objection went to assessability and jurisdiction, and it could properly be raised for the first time in appeal if the point was decidable on the existing record. The appellate authority also had no power to shift the amount to another year or reopen a different assessment for that purpose. The Tribunal was therefore not right in refusing to entertain the contention.

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Issues: Whether the Appellate Tribunal was right in refusing to entertain the assessee's legal contention that the amount of Rs. 32,000 could not be assessed for the assessment year 1948-49.

Analysis: In the case of income from undisclosed sources, the assessee cannot choose a previous year different from the statutory previous year ending on 31 March immediately preceding the assessment year. The receipts in question fell outside the relevant previous year for assessment year 1948-49, so the objection went to the root of assessability and to the jurisdiction of the authorities. A question of law of this nature, capable of decision on the material already on record, could properly be permitted to be raised for the first time in appeal. The Appellate Assistant Commissioner also had no power, under the appellate and revisional framework, to redirect the amount to another year or reopen a different assessment for that purpose.

Conclusion: The Tribunal was not right in refusing to entertain the point relating to the assessability of Rs. 32,000 for assessment year 1948-49, and the objection ought to have been considered.

Ratio Decidendi: A jurisdictional question affecting assessability for the relevant assessment year, if decidable on the existing record, may be allowed to be raised for the first time in appeal, and income from undisclosed sources must be assessed only in the statutorily relevant previous year.

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