A search and seizure operation was carried out at residential and office premises of assessee.  It was found that assessee had fraudulently obtained refunds from income tax department by producing forged challans.  Assessing Officer added amount of such fraudulent refunds to income of assessee. Assessee contended that alleged misappropriation of income tax refund/money receipts was recovered fully, by Govt. of India, hence, it did not constitute income chargeable to tax. On appeal the Tribunal held that  the  assessee had admitted to fraudulently earning income and parking same in accounts operated by him.  Amount out of fraudulent refunds were invested in shares and department had recovered amount by disposal of shares and investments. The Tribunal held that the  fraudulent income was recovered or repaid in subsequent years would not negate taxability of income in year of accrual. Provision of section 2(24) is an inclusive definition and does not differentiate between legality or illegality of earning of income. On facts since assessee had admitted to fraudulently earning income and utilized it for economic gains, including investments, such fraudulent income is  taxable in hands of assessee as income from other sources. The Tribunal also held that the recovery of income did not constitute an expense incurred wholly and exclusively for purpose of earning income under section 57. Disallowance is affirmed.  (AY. 1992-93, 1993-94)