TMI Blog2015 (11) TMI 895X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income Tax Authorities. The appellate authority has observed that such disclosure leads to presumption that such income was generated through illegal activities of manufacture. It is well settled law that clandestine removal has to be established by production of positive evidence. In the absence of any other evidence on record, some disclosure and surrender of income before the Income Tax au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, we proceed to decide the appeal itself inasmuch as the issue stand decided by the earlier decision of the Tribunal as also of High Court. 2. For better appreciation of the order passed by the Commissioner (Appeals), we reproduce the relevant paragraph as under: 28. I have gone through the case records as well as submissions made at the time of personal hearing. Firstly, it is seen that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sh at the residence of the Directors. A company is a legal entity distinct from the directors and its income cannot be claimed to be income of the Directors. Moreover, once an income is recorded in the books of an assessee as miscellaneous income and that is accepted as income before the income tax department, the natural presumption would be to relate it with the core activity of the assessee whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cord, some disclosure and surrender of income before the Income Tax authorities especially when the appellant had taken a ground that they were also doing other activities for generation of income, cannot held to be sufficient evidence so as to uphold the finding of clandestine activities in the absence of procurement of raw materials, actual manufacture of the goods and non-identity of the transp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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