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TMI Blog1977 (4) TMI 55X X X X Extracts X X X X X X X X Extracts X X X X ..... ank ofIndiafor meeting a hundi loan. The explanation was that Radhey Shyam had deposited this amount on12th Oct., 1970in the bank for his purpose and that the source for this amount was as under: (i) Rs. 5,000 withdrawn by Radhey Shyam on 9th Oct., 1970 from the firm of M/s Khan Chand Hira Nand of Pauri. (ii) Rs. 5,048 out of cash balance of the assessee firm on12th Oct., 1970. This explanation was rejected by the ITO because the entries made in the books of account of the two firms did not support it. The Tribunal also confirmed this view of the ITO though it noted that the Pauri firm had certified that it had advanced on 12th Oct., 1970 Rs. 5,000 to the assessee firm, that the entries in its books showed that the said amount had been p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . It was specifically pointed out to the AAC that the Pauri firm had categorically affirmed that it had advanced Rs. 5,000 to the assessee on 9th Oct., 1970 and that part of the explanation of the assessee had not been found to be false; that the Pauri firm delivered cash to Kanahaya Lal who in his turn delivered the money to Radhey Shyam, partner. But the AAC was of the view that the assessee was guilty of furnishing inaccurate particulars of income and in this view he confirmed the penalty. The assessee is in appeal. 4. Shri H.G. Malik, learned counsel, reiterated the arguments before the authorities below which had been taken in the quantum and the penalty proceedings. In particular, his grievance was that the Tribunal, while confirming ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al show clearly that the assessee's opening cash balances on each of the dates from 12th Oct., 1970 to 20th Oct., 1970 was clearly above Rs. 5,048 which was the balance over and above the dasti loan of Rs. 5,000 required for meeting the demand of Rs. 10,048. The assessee's case is that entries were made on20th Oct., 1970when a full accounting was given by Radhey Shyam of the dasti loan of Rs. 5,000 and the payment out of cash balance to the extent of Rs. 5,048, both towards the liability of Rs. 10,048 met on12th Oct., 1970. We do not see on the facts of the case that there is any improbability about this explanation in view of the sufficiently high cash balance from12th Oct., 1970onwards. In any case, while the explanation of the assessee m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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