TMI Blog1976 (8) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... ept., 1970the ITO asked the assessee to file a certificate from the Bank for obtaining overdraft limit and the stock pledged with the bank on the closing date. According to the ITO the assessee took sixteen (16) adjournments on different dates, and it was only on21st March, 1973that he filed a revised return surrendering the value of 340 qtls. of groundnut. The revised return showed an income of Rs. 32,645 as against the original return of Rs. 1,825. The ITO however took the value of 340 qtls. at Rs. 41,769 taking the average rate of purchase as against Rs. 30,600 shown by the assessee in the revised return with the result that after making some other minor additions, he assessed the income of the assessee at Rs. 44,620, and also initiated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anu or their identity or any other document. Any body coming and saying that the ground nut belonged to him and not to the assessee can have no value. Any farmer who sells ground nuts every year will have no transaction with the assessee eighter in the past or in future cannot be believed to entrust heavy quantity of goods to the assessee without any written document only on one particular date. It is thus only a concocted story and has got no value. He also observed that on the other hand, the assessee after 16 adjournments before the ITO has quietly filed a revised return admitting the entire business as his own. There is no understanding given at any stage by the Department that no penalty shall be imposed for filing a revised return and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e we have seen that all the four persons appeared before the IAC and have confirmed the pledging their goods to the assessee and also have stated the specific number of bighas that they are possessing. Dharam Singh in his statement stated that he possesses 70 bighas of land, Angad in his statement stated that he possesses 45 bighas of land, he sowed ground nuts in his field. Sh. Gujraj Singh in his statement before the ITO stated that he along with his brother possesses 75 bighas of land and they cultivated the crop of ground nut in their fields. Likewise Balbir Singh also stated on oath that he possesses 100 bighas of land and the crop of groundnut is grown on his field. Besides the above four deponents stated as to how many quintals of gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was held that the Department had not discharged its onus of establishing that the deposit was not genuine and there was no material placed by the Department on record justifying the inference that the cash credit in question was the income of the assessee. The reference was rejected by the Tribunal and the Hon ble High Court has refused to interfere in the finding of the Tribunal." In ITR 369 their Lordships of the Supreme Court dealt with the facts wherein the income was shown at Rs. 51,214 while Rs. 77,517 were added in relation to pharmaceuticals and a sum of Rs. 9,900 in relation to Chemicals. The sale bills were forged and some purchasers were fictitious. And as such the IAC imposed a penalty of Rs. 35,000 under s. 28(1)(c) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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