TMI Blog2009 (3) TMI 589X X X X Extracts X X X X X X X X Extracts X X X X ..... S. Khehar J.- The assumption that the respondent-assessee had evaded his tax liability was made by the Assessing Officer (in the assessment order datedMarch 24, 2005) on the basis of material depicting that the assessee had invested in fixed deposits in banks, i.e., the Bank of Maharashtra and the Punjab National Bank. The explanation tendered by the respondent assessee was, that the aforesaid deposits were made out of money received from the sale of lottery tickets. In so far as the assessment under reference is concerned, i.e., for the assessment year 1997-98, the respondent assessee had not filed any return of income. The Assessing Officer was of the view that income from the sale of lottery tickets invested as fixed deposits in diffe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed investment under section 69 of the Income-tax Act, 1961. As such, an addition of Rs.1,25,76,000 was made by the Assessing Officer to the income of the respondent assessee. 4. Besides the aforesaid addition, penalty proceedings were initiated against the respondent assessee under section 271(1) (c) of the Income-tax Act, 1961, on the ground that the respondent-assessee had failed to file his return of income within the postulated time. Additionally, penalty proceedings were also initiated against the respondent-assessee under section 271B of the Income-tax Act, 1961, as he had failed to get his accounts audited. 5. Dissatisfied with the determination rendered by the Assessing Officer, as also penalty proceedings initiated against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fact that the Assessing Officer who appeared before the Commissioner of Income-tax (Appeals), Faridabad, acknowledged, that no new facts had been brought on the record for the assessment year 1997-98 (besides the material which had been taken into consideration in respect of an identical controversy pertaining to the preceding assessment year 1996-97) as also the fact, that the Assessing Officer had also verified the genuineness of some of the vendors by deputing Inspectors, and had arrived at the conclusion that the same were genuine. As also the fact that the present controversy in respect of the assessment year 1997-98 was identical to the controversy which was earlier adjudicated upon for the assessment year 1996-97, the Commissioner of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see pertaining to the assessment year 1996-97 was allowed in favour of the respondent assessee on the same facts and circumstances, as in the present appeal. Secondly, the respondent-assessee had produced confirmations from all vendors on plain paper, along with affidavits of as many as 20 such vendors affirming the transfer of funds by them to the respondent assessee on account of sale/purchase of lottery tickets. Thirdly, his excuse for not producing the vendors for verification was that he had closed the instant business about a decade before the issue was raised, and as such, it was not possible for him to trace all the vendors. Fourthly, out of the confirmations/affidavits produced by the respondent assessee verification was carried ou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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