TMI Blog1981 (8) TMI 119X X X X Extracts X X X X X X X X Extracts X X X X ..... Kota. Regarding the source of acquisition of this (notes) the assessee in the declaration made on 19th Jan., 1978 with the Bank in column 17 thereof declared that these notes represented sale proceed of stone of the last one month at Budhpura Branch of the assessee where stone was sold. After taking into consideration the material in process, and confronting the same to the assessee, the ITO held that the source of 12 notes of Rs. 1,000 each aggregating to the value of Rs. 12,000 was not proved. According to the ITO, the following facts were important for the determination of the issue: (i) On 15th Jan., 1978 opening cash balance in the Head Office of the assessee was on Rs. 8,000.25. (ii) On 15th Jan., 1978 Rs. 10,000 was transferred f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , therefore, once again confronted this situation to the assessee. The assessee submitted that no records of various types of currency notes lying in as with the assessee was kept on 14th Jan., 1978, high denomination notes of Rs. 1,000 each were got converted from cash in Tijori through the Punjab National Bank, Kota Branch and these represented sale proceed at Budhpura Branch. It was further submitted that exchange of 9 high denomination notes on 14th Jan., 1978 and remittance of cash of Rs. 10,000 on 15th Jan., 1978 from Budhpura Branch amply proved the existence of such notes. The ITO did not accept this explanation as the Punjab National Bank, Industrial Area, Kota did not furnish the names of the persons to whom such 9 notes were give ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t branch. There was no legal obligation on the appellant to maintain separate details of high denomination notes lying with it in the form of cash balance and hence non-maintenance of such details does not justify any adverse inference. The very fact that the average monthly turnover was more than Rs. 1 lakh supports the claim of the appellant that it was likely that it had received such notes as sale proceeds. The addition of Rs. 12,000, is, therefore, deleted." 6. The Revenue is aggrieved against the above finding of the CIT(A) and is in appeal before the Tribunal. The ld. D.R. as repeated the arguments as incorporated in the order of the ITO and has vehemently contended that the order of the CIT(A) is erroneous. The ld. counsel of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... corroborated by the Bank record, inasmuch as, the bank authorities have duly justified that 9 high denomination on notes of the value of Rs. 1,000 each were exchanged from the Bank on that date. Shri Ranka, the ld. counsel of the assessee further maintained that it was not obligatory on the part of the assessee as well as on the bank to have maintained details and, therefore, it was strong evidence in favour of the assessee unless it was disproved by the Department which it has failed coupled with these facts, it has been urged that the assessee was receiving huge fund from the Branch Office which also included high denomination notes. It has been vehemently contended on behalf of the assessee that it explained to the satisfaction of the au ..... X X X X Extracts X X X X X X X X Extracts X X X X
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