TMI Blog1991 (7) TMI 138X X X X Extracts X X X X X X X X Extracts X X X X ..... being asked to explain the position of various assets and liabilities of the assessee in the beginning of the accounting period relevant to the asst. yr. 1985-86, i.e.1st April, 1985, a detailed cash flow chart was furnished showing the expenditure, savings and other details of the assessee. This cash flow chart filed by the assessee is annexed hereto, marked Annexure 'A'. A perusal of the same will reveal that the assessee claimed cash balance available with it as on1st April, 1975, at Rs. 16,000 and as on1st April, 1984at Rs. 64,000. This cash flow statement was not accepted by the ITO. It was stated before the ITO that the assessee remained an agriculturist for a long period and, thereafter, he started some pawning business on a petty scale at his residence at Khadarwala, Muzaffarnagar. It was stated that he started his career with a petty sum of Rs. 5,000. Besides that, the assessee was owning agricultural lands measuring about 34 Bighas. He was married in the year 1974 and also claimed receipts of petty cash gifts and two sovereigns (Ginnies) in ceremonial Tika at the time of the marriage. Besides a sum of Rs. 10,000 was advanced on10th Nov., 1975for the first time and the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt in the construction of the house property as on 14th Jan., 1984 was Rs. 43,000 and nothing was left for investment in the pawning business. He, Therefore, did not accept the capital in the pawning business at Rs. 64,000. 6. The Dy. Commr. Has upheld the order of the Assessing Officer in not accepting the initial capital at Rs. 16,000 and also capital of Rs. 64,000 as on 1st April, 1984 investment in the money lending business, against which the assessee is in further appeal. 7. The learned counsel for the assessee has referred to the cash book flow and submitted that the assessee had capital of Rs. 16,000 as on 1st April, 1975 and funds to the tune of Rs. 1,07,000 as on 1st April, 1984 out of which Rs. 43,000 were invested in the construction of the house and the balance Rs. 64,000 was invested in the pawning business. The learned Departmental Representative, on the other hand, has supported the order of the authorities below. 8. I have given my very careful consideration to the rival submission. I have already annexed to this order a copy of the Cash flow Statement filed by the assessee before the Assessing Officer. The assessee owned 34 Bighas of agricultural lands. This ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to Mohd. Abdul Sakoor has wrongly been upheld, for the figure of Rs. 30,000. According to him, it is merely based on presumptions. 11. There was a search in this case at the residential premises of the assessee. His bank locker was also searched. Certain incriminating documents were found and seized. Certain ornaments were found in the locker. A note was found along with the articles dt.14th Dec., 1984. The assessee admitted that a sum of Rs.8,000 was advanced against these items. There were certain jottings on page 6 of the notes. Following jottings were found to be scribed at two places: "11 MR/14th Dec., 1984" The assessee expressed his inability to say anything about these jottings. The assessee, however, admitted his hand-writing. One writing in black ink was not in his hand. He also denied to have any knowledge about the hand-writing in black ink. The assessee was asked to state, whether the letters of "MR" stood for Molak Ram. The assessee showed his inability to tell anything. The Assessing Officer observed that, total weight of the items, written at page 2 serial Nos. 3 to 16 was 391.600 gms. The claim of the assessee that only Rs.8,000 was advanced against the ab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s under s. 132(5) suffered from many contradictions. For example, the Assessing Officer asked Shri Mohinder Singh to state, whether he had fixed up with the assessee that he was going to keep ornaments with him as Amanat. The answer was 'no'. Further, when he came to the assessee with the ornaments, the latter did not have any objection and the same were kept by him. According to the assessee, this looked very abnormal. He, therefore held that Shri Mohinder Singh had brought these ornaments for taking money from him against the pawning of the ornaments. Further the following jottings were also found to have been made on the back of the Potli which were taken down at the back of the slip afterwards: " 17/Molak/2nd Sept., 1984 " 13. On the basis of these jottings, the Assessing Officer came to the conclusion that the assessee had advanced Rs. 17,000 to Mohinder Singh, the source of which remained unexplained. The Dy. Commr. Has upheld the same. 14. I have hearted both the parties. The learned counsel for the assessee reiterated that the jewellery was kept by Mohinder Singh as Amanat. Therefore there was no warrant for holding that the assessee had advanced Rs. 17,000. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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