1974 (2) TMI 18

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....t year 1962-63, the Income-tax Officer found that there were certain discrepancies regarding the stock of manganese held by the petitioner during the relevant year and that a sum of Rs. 1,75,000 shown in the books of the petitioner as borrowings on hundies had not been established. He was also of the opinion that there was a credit of Rs. 9,000 in suspense, account regarding which there was no proper explanation. In view of the foregoing, the Income-tax Officer ordered that in all a sum of Rs. 3,40,970 as income from undisclosed sources should be added to the income declared by the petitioner in his profit and loss account. The appeal filed against the order of the Income-tax Officer was unsuccessful. Thereafter, the petitioner filed a peti....

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....re assessable as income of the petitioner only in the assessment year 1961-62, if at all they were assessable. In support of the above proposition, he relied on a decision of the Supreme Court in Baladin Ram v. Commissioner of Income-tax, in which it was observed by the Supreme Court that it was well-settled that in the absence of any accounts in respect of the undisclosed source or when there was nothing to show that the assessee had exercised any option under section 2(11)(i)(a) of the 1922 Act, the only possible way in which income from an undisclosed source could be assessed or reassessed was to make the assessment on the basis that the previous year for such an income would be the ordinary financial year and had to be assessed in the i....