https://www.taxtmi.com/caselaws?id=39669 Unexplained cash credits in an assessee-firm's books may be assessed as income from undisclosed sources when the assessee fails to prove their nature and source satisfactorily. The mere fact that the entries stand in the names of third persons does not shift the initial burden to the department; the assessee must explain the credits and establish their genuineness. If the explanation is rejected and the surrounding material indicates that the named persons were only a cloak, the taxing authorities may treat the sums as the assessee's income. The principle accords with the later statutory recognition of this burden under section 68 of the Income-tax Act, 1961. en-us Mon, 29 Apr 1974 00:00:00 +0530 Mon, 19 Apr 2010 16:05:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39669 Unexplained cash credits in an assessee-firm's books may be assessed as income from undisclosed sources when the assessee fails to prove their nature and source satisfactorily. The mere fact that the entries stand in the names of third persons does not shift the initial burden to the department; the assessee must explain the credits and establish their genuineness. If the explanation is rejected and the surrounding material indicates that the named persons were only a cloak, the taxing authorities may treat the sums as the assessee's income. The principle accords with the later statutory recognition of this burden under section 68 of the Income-tax Act, 1961. Case-Laws Income Tax Mon, 29 Apr 1974 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39669