TMI Blog1976 (11) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... as in the custody of the Customs Department, on 25th Jan., 1972. The Income Tax Officer required the assessee to explain the source of Rs. 38,000. The assessee explained that the amount represented loans taken from two parties, withdrawal from another firm and his own savings. The Income-tax Office accepted the explanation excepting for the assessee s claim that Rs. 25,000 out of the said cash of 38,000 represented the loan money advanced to him by one Krishan Chand of 74-A, Phatak Dhobia, Frash Khana,Delhion12th August, 1970. Hence he assessed Rs. 25,000 as income from undisclosed source. The Income Tax Officer also looked into certain loose papers discovered at the residence of the assessee at the time the raid. From this material he conc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come tax and had not kept any books of account. There was no doubt pronote executed but it had no evidenciary value as it was only on 4 annas stamp paper. Even the so called witness to the pronote were never produced before the Income-tax Officer for examination. In the above view the Appellate Asstt. Commissioner concluded that the assessee had merely fabricated some evidence in his favour after he paid and that, therefore, the addition of Rs. 25,000 was in order. 3. On the addition of Rs. 10,000 the Appellate Asstt. Commissioner looked into the order passed by the Asstt. Collector of Customs on25th Feb., 1972. He noted that certain articles of foreign origin came to be confiscated by the Customs Department on the assessee s failure to e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, 1970 on a pronote executed by the assessee, that the loan was carrying interest of 15% per annum; that the amount of Rs. 25,000 was given by him out of the sale proceeds of his agricultural land situated at Barwala, Distt. Hissar, Haryana; that he was carrying on money lending business and was assessed to Income Tax under GIR No. S.N. 240 K.III (32). When the Income Tax Officer questioned him on his affidavit he admitted that he had not maintained any books of account after the accounting year 1965-66 and also admitted that he was not paying the tax. He further stated that he had taken a loan of Rs. 40,000 from one Naunihal Krishan of Gunar in Sep., 1970 and returned it in May, 1972; that another loan of Rs. 30,000 was taken from M/s. Ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nds in Barwala. He also gave some particulars of the sale proceeds. Further he stated that he had taken loans of Rs. 40,000 and Rs. 30,000 from two parties and also he had advanced loan of Rs. 40,000 and Rs. 35,000 to three parties. All these claims before the Income-tax Officer went unchallenged. In particular, his claim that he received money against sale of agricultural lands should have been shown to be incorrect, otherwise, the position is, that the assessee has pointed out a source for the cash in his hand. That party also explained the source out of which the case was passed on to the assessee and the existence of such a source has not been disputed. In the result, we hold that so far as the assessee is concerned, the burden on him s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. The Appellate Collector was of the view that the following articles were for the assessee s personal use: (i) Two suit lengths. (ii) One Swiss Cavalry wrist watch. (iii) One lady wrist watch Demex. Hence he released the above three items and gave an option to the assessee to the remaining goods on payment of redemption fine of Rs. 300. 9. We have also considered the facts brought out by the Appellate Assistant Commissioner of Income Tax in this regard. He noted as under: "I have carefully considered the arguments of the appellant s counsel and have also gone through the 13 loose papers, seized from the premises of the appellant. Out of the seized material, two are the telephone diaries in which the names and telephone numbers ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
