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TMI Blog1988 (10) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... jan Singh Malik filed voluntary returns on October 3, 1968, wherein he showed the amounts received by him as a medical practitioner under the Employees' State Insurance Scheme. No amount was shown as having been earned in private practice. On January 20, 1969, the Income-tax Officer heard the case for the aforesaid assessment years in the presence of the assessee. During the hearing, the assessee admitted that he had done private practice but had no accounts. By assessment orders dated March 31, 1969, the Income-tax Officer added Rs. 1,000 towards private practice for the first year and Rs. 1,500 for each of the subsequent years. On August 13, 1969, the assessee filed a return for the assessment year 1969-70 showing a net income of Rs. 3, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Department to prove the concealment of income. However, that view was reversed by a Full Bench of this court in Vishwakarma Industries v. CIT [1982] 135 ITR 652, and this Full Bench view has been approved by the highest court of the land in Chuharmal v. CIT [1988] 3 SCC 588 ; 1988] 172 ITR 250. Keeping in view the aforesaid decisions, the facts of the case have to be appreciated. For the four previous years, returns were filed without showing income from private practice, although admittedly the assessee was carrying on private practice as well. During the assessment proceedings, on January 20, 1969, the assessee made a statement admitting private practice and by assessment orders dated March 31, 1969, on estimate basis, Rs. 1,000 was a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vious four years, he knew fully well when he filed the original return on August 13, 1969, that he had concealed income from private practice. Two months thereafter, the inspector visited the premises of the assessee and collected material evidence to the effect that the assessee was carrying on private practice. It is long thereafter that a revised return showing income from private practice was filed. The statement made on January 20, 1969, the assessment for the previous four years estimating income from private practice, the visit of the Inspector on October 14, 1969, and the material collected regarding private practice and the assessment and the appellate orders constituted sufficient material for raising three presumptions as stated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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