Undisclosed income must be assessed in the correct previous year; confiscated gold value could not enter later-year income.

Income from undisclosed sources had to be brought to tax in the relevant previous year under section 2(11) of the Indian Income-tax Act, 1922. On the Tribunal's own finding, the gold was acquired and paid for out of undisclosed income before 30 January 1958, which fell outside the ordinary financial year relevant to assessment year 1959-60. The value of the confiscated gold therefore could not be included in the assessee's total income for that year. A related contention on reference was rejected because the point was only a different aspect of the same issue already before the Tribunal.

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Issues: Whether the value of gold confiscated could be included in computing the assessee's total income for the assessment year 1959-60.

Analysis: The assessee's income from undisclosed sources had to be assessed with reference to the relevant previous year, and under section 2(11) of the Indian Income-tax Act, 1922 the previous year for such income was the ordinary financial year. The Tribunal's own finding showed that the gold had been acquired and paid for out of undisclosed income before 30 January 1958. That date did not fall within the ordinary financial year relevant to the assessment year 1959-60, so the amount could not lawfully be brought into that year's assessment. The contention that the point did not arise out of the Tribunal's order was rejected because the question whether the income belonged to the relevant previous year was only a different aspect of the same issue already before the Tribunal.

Conclusion: The value of the confiscated gold could not be included in the assessee's total income for the assessment year 1959-60, and the answer was in favour of the assessee.

Ratio Decidendi: Income found to be from undisclosed sources must be assessed in the previous year in which it accrued or was received, and a new aspect of an issue already before the Tribunal is referable if it is implicit in the question decided by the Tribunal.

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