https://www.taxtmi.com/caselaws?id=7426 An unexplained receipt can be treated as income only where the inference is reasonably supported by evidence after considering the surrounding facts and circumstances; a mere rejection of the assessee's explanation is not enough. The Kerala HC noted that the assessee had no substantial known source of income in the relevant period apart from agricultural property and had begun business only later, yet the tax authorities relied only on the rejected explanation for the credited amount and property investments without testing whether the amounts could properly be inferred as previous-year income. On that basis, the addition as income from undisclosed sources was held invalid and the disputed amount was deleted. en-us Wed, 18 Sep 1968 00:00:00 +0530 Thu, 19 Feb 2009 17:55:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7426 An unexplained receipt can be treated as income only where the inference is reasonably supported by evidence after considering the surrounding facts and circumstances; a mere rejection of the assessee's explanation is not enough. The Kerala HC noted that the assessee had no substantial known source of income in the relevant period apart from agricultural property and had begun business only later, yet the tax authorities relied only on the rejected explanation for the credited amount and property investments without testing whether the amounts could properly be inferred as previous-year income. On that basis, the addition as income from undisclosed sources was held invalid and the disputed amount was deleted. Case-Laws Income Tax Wed, 18 Sep 1968 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7426