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1976 (3) TMI 51 - SC - VAT and Sales TaxWhether, on the facts and the circumstances of the case, it was legal to treat ₹ 10,000, an item of cash credit standing in the name of the wife of one of the partners of the assessee-firm, as the profit or income out of concealed sales? Held that:- The fact that neither the assessee-firm nor its partner or his wife adduced satisfactory material to show the source of that money would not, in the absence of anything more, lead to the inference that the said sum represents the income of the firm accruing from undisclosed sale transactions. It was, in our opinion, necessary to produce more material in order to connect the amount of ₹ 10,000 with the income of the assessee-firm as a result of sales. In the absence of such material, the mere absence of explanation regarding the source of ₹ 10,000 would not justify the conclusion that the sum in dispute represents profits of the firm derived from undisclosed sales. We, therefore, accept the appeal, discharge the answer given by the High Court to question (1)(a) and answer that question in the negative, in favour of the assessee-appellant and against the revenue.
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