https://www.taxtmi.com/caselaws?id=185033 A prima facie reasonable explanation for a cash credit cannot be rejected on arbitrary or irrelevant grounds when the assessee discloses identifiable sources from which the receipt could arise. The law does not require maintenance or production of accounts unless the assessee actually maintained and suppressed them, so no adverse inference can be drawn merely because some accounts were not produced. The sufficiency of the explanation must be tested by whether the disclosed sources could reasonably account for the credit entry, not by insisting on proof of the exact purpose of the amount on the last day of the accounting year. The cash credit was therefore not taxable as income from an undisclosed source. en-us Fri, 03 Feb 1956 00:00:00 +0530 Thu, 28 Jul 2016 16:45:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=185033 A prima facie reasonable explanation for a cash credit cannot be rejected on arbitrary or irrelevant grounds when the assessee discloses identifiable sources from which the receipt could arise. The law does not require maintenance or production of accounts unless the assessee actually maintained and suppressed them, so no adverse inference can be drawn merely because some accounts were not produced. The sufficiency of the explanation must be tested by whether the disclosed sources could reasonably account for the credit entry, not by insisting on proof of the exact purpose of the amount on the last day of the accounting year. The cash credit was therefore not taxable as income from an undisclosed source. Case-Laws Income Tax Fri, 03 Feb 1956 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=185033