TMI Blog1995 (1) TMI 103X X X X Extracts X X X X X X X X Extracts X X X X ..... s N. Rajaram Nagardas Angadia of Ahmedabad-Baroda (head office of which is at Surat) from the last eight years. He further stated that the plastic bag containing the currency notes of Rs. 7,15,000 was given to him by Shri N.C. Patel, the manager of Baroda branch of the Angadia firm on 29th Jan., 1985, with the directions to deliver the same to Shri Mangalbhai, an Accountant of the head office at Surat. According to the statement dt. 29th Jan., 1985, recorded by the ADI, Baroda, at the railway station, Baroda, the assessee stated that he had come to Baroda from Ahmedabad via Nadiad at about 7.30 p.m. on 28th Jan., 1985. He stayed overnight at the Baroda office of M/s N. Rajaram Nagardas Angadia at Baroda. At that time he had a small rexin bag containing his cloths and that no cash or valuables were with him. At about 10.00 p.m. on 28th Jan., 1985, Shri N.C. Patel, the local manager, who also stayed on the first floor of the branch office, came to him and told that a parcel was to be delivered to head office of Angadia firm at Surat. For that purpose Shri P.R. Patel (the assessee) was asked to go to Surat office the next day morning. The next day in the morning at about 5.45 a.m., i. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olice an amount of Rs. 1,10,000 belonged to Shri Narendra Narayandas Patel who had confirmed it by his letter dt. 11th May, 1985, and the balance of amount of Rs. 6,05,000 represented his income from business over a period of five years as follows: Year ended Business income Salary income Total . Rs. Rs. Rs. 31st March, 1981 70,000 4,200 74,200 31st March, 1982 85,000 4,800 89,800 31st March, 1983 1,00,000 5,400 1,05,000 31st March, 1984 1,50,000 6,000 1,56,000 31st March, 1985 2,00,000 6,000 2,06,000 . 6,65,000 26,400 6,31,000 He further submitted that he was carrying on business in rough and polished diamonds which was started with the aid of amount of Rs. 8,000 which was received as "Candla" and "Paithan" amounts at the time of his marriage in 1981. He also made a disclosure petition under s. 273A to the CIT surrendering an amount of Rs. 6,05,000. 6. The Assessing Officer completed the assessments relating to asst. yrs. 1981-82, 1982-83, 1983-84 and 1984-85 on protective basis. How ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AC(Asst.) should have assessed the assessee for asst. yr. 1985- 86 treating Rs. 6,05,000 on account of seized cash as his income from undisclosed sources on protective basis and without prejudice to any action in the case of the firm M/s N. Rajaram Nagardas Co. The materials on records, prima facie, show that the assessee's only source of income is "salary" from the firm. His duty was to deliver the parcels received by the branch office. It is, therefore, clear that the assessee could not or did not earn the impugned amount of Rs. 6,05,000 which he volunteered himself for assessment. This is only to assist his employer firm, which has as many as eleven branches at various places. Considering all these facts, I have no hesitation in converting the assessment for the asst. yr. 1985-86 as a "protective" assessment. The assessment is modified to this extent." 8. Shri K.C. Patel, the learned counsel for the assessee, submitted that the impugned order of the CIT is bad in law and ab initio void. According to the learned counsel for the assessee, the order of the CIT is bad being passed without jurisdiction as she ought to have appreciated that the order passed by the IAC(Asst.) w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to another at the directions of the Angadia firm. It was during the course of such duties that he was carrying black plastic bag containing currency notes of Rs. 7,15,000 and that when he was intercepted by the railway police, Baroda, he gave a statement before the police inspector that the said bag was given to him by the firm M/s N. Rajaram Nagardas Angadia, Baroda branch office. He made a similar admission before the ADI, on the same date. Later on, he retracted from his two statements made spontaneously before the two authorities stated supra and came forward with a concocted story that he was doing business in rough and polished diamonds and had earned the sums tabulated in chart at page 5 of the paper book during the asst. yrs. 1981-82 to 1985-86. It cannot believed that a person who was working as an employee at a meagre salary of Rs. 500 per month and carrying packets/parcels from one place to another, would carry on business and that too of diamonds which requires not only great expertise but lot of investments. His story that he started the business with the amount of Rs. 8,000 which was received as 'Candla' and 'Paithan' amounts at the time of his marriage in 1981, is o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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