https://www.taxtmi.com/caselaws?id=179118 In income-tax proceedings, the authorities may rely on circumstantial material and adverse inference rather than strict court rules of evidence to treat a cash credit as taxable income. Where the assessee's explanation is false or unsupported, and surrounding facts such as altered vouchers, denials by alleged counterparties, and failure to produce available records create doubt, the Revenue need not prove the source by positive evidence. On the same material, a finding that the return contained deliberately inaccurate particulars can support penalty. The credited sum was upheld as assessable income, and the penalty finding was sustained. en-us Tue, 11 Jan 1944 00:00:00 +0630 Sat, 20 Feb 2016 14:45:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=179118 In income-tax proceedings, the authorities may rely on circumstantial material and adverse inference rather than strict court rules of evidence to treat a cash credit as taxable income. Where the assessee's explanation is false or unsupported, and surrounding facts such as altered vouchers, denials by alleged counterparties, and failure to produce available records create doubt, the Revenue need not prove the source by positive evidence. On the same material, a finding that the return contained deliberately inaccurate particulars can support penalty. The credited sum was upheld as assessable income, and the penalty finding was sustained. Case-Laws Income Tax Tue, 11 Jan 1944 00:00:00 +0630 https://www.taxtmi.com/caselaws?id=179118