1966 (8) TMI 24

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....er to understand the question referred it is necessary to state a few facts. The Income-tax Appellate Tribunal dealt with two appeals relating to the assessments for the two years 1958-59 and 1959-60 by a common order. For the year 1958-59, additions have been made to the income because of certain unexplained cash credits found in the account books of the assessee pertaining to the relevant period of account. The total of these additions for the year of assessment 1958-59 came to Rs. 12,500. There was a further addition of Rs. 8,000 on estimate. For the year 1959-60 certain cash credits totalling a sum of Rs. 37,500 was found in the accounts of the assessee in the period of account relating to the year of assessment 1959-60. The ITO aske....

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.... the extent of Rs. 20,500 for the year of assessment 1958-59 which has been added to the income returned by the assessee on the basis of unexplained cash credits and also on the basis of estimated income from the business disclosed. We do not think that such a contention put foward at the stage at which it was put forward and which was inconsistent with the explanation given by the assessee earlier should necessarily be accepted by the Tribunal. It is well established that when cash credits are found in the account books of an assessee during the relevant period of account it is the assessee who should give satisfactory explanation in regard to those entries. This is as it should be, for the details regarding this are peculiarly and perhaps....