https://www.taxtmi.com/caselaws?id=6845 An addition to income cannot be sustained on conjecture or suspicion alone; there must be material evidence linking the assessee to the alleged business or income source. Here, the books showed a squared-up account in the name of Panna Lal, and the tax authority treated the sum as artificial receipts from undisclosed sources, but the appellate authorities relied only on an inference that the assessee must have shared in Panna Lal's business because no interest was charged. The HC held that, absent evidence connecting the assessee with that business, the addition could not stand and the reference was answered in favour of the assessee. en-us Mon, 10 Oct 1966 00:00:00 +0530 Fri, 06 Feb 2009 16:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6845 An addition to income cannot be sustained on conjecture or suspicion alone; there must be material evidence linking the assessee to the alleged business or income source. Here, the books showed a squared-up account in the name of Panna Lal, and the tax authority treated the sum as artificial receipts from undisclosed sources, but the appellate authorities relied only on an inference that the assessee must have shared in Panna Lal's business because no interest was charged. The HC held that, absent evidence connecting the assessee with that business, the addition could not stand and the reference was answered in favour of the assessee. Case-Laws Income Tax Mon, 10 Oct 1966 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6845