TMI Blog2013 (7) TMI 572X X X X Extracts X X X X X X X X Extracts X X X X ..... vices to some but do not receive any amount for years together. None would leave hard earned money, for their day-to-day needs if actual services have been rendered by the said persons. It was upon the appellant to discharge the onus which heavily lay on him and he miserably failed for the reasons stated herein before. The said issue being essentially a finding of fact - the appeal is liable to be dismissed as no substantial question of law arise - Court relied upon the judgement of Sumati Dayal v. CIT (1995 (3) TMI 3 - SUPREME Court) – It is essentially a finding of fact not only recorded by the Tribunal but by the learned Assessing Officer as well as by the first appellate authority that no services were rendered by the sub-brokers an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e order dated March 30, 2001, disallowed the commission/brokerage claimed by the appellant. The learned Assessing Officer, during the course of hearing, however, required the appellant to : (i) furnish the details of sales effected through sub-brokers ; (ii) lead evidence to the fact that the sales were made through subbrokers ; (iii) details of outstanding from the parties to whom sales of yarn were made through sub-brokers ; and (iv) to provide sub-brokers with their books of account and record to verify the genuineness of the brokerage paid to the sub-brokers. It is stated by the learned Assessing Officer, in the order that neither the appellant-assessee produced the account books of sub-brokers till the conclusion of the proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the Commissioner of Income-tax (Appeals), came to the conclusion that even signatures on the affidavits so filed were different from the one on summons under section 131 of the Income-tax Act. Even one of the sub-brokers, namely, Shri Shivraj Jain, gave a statement under section 131 of the Income-tax Act in his assessment proceedings for the assessment year 1998-1999, as to having not given an affidavit and did not confirm the commission paid by the appellant-assessee to him. He further stated that he did not even work as sub-broker for the appellant-assessee. It may be observed that the appellant furnished affidavits of the said sub-brokers before the learned Commissioner of Income-tax (Appeals). After considering the issue at length ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the learned Commissioner of Income-tax (Appeals), by reiterating the facts stated by the learned Commissioner of Income-tax (Appeals). It was further observed that under similar circumstances, the learned Income-tax Appellate Tribunal for the immediate past assessment year, i.e., 1997-98 confirmed the disallowance to the extent of Rs. 9,78,461 and that the issue became final so far as the assessment year 1997-1998, is concerned, as it was not challenged in further appeal before this hon'ble court. While confirming the disallowance, the learned Income-tax Appellate Tribunal even held that some of the sub-brokers are not assessed to income-tax though they have heavy credit balances. It was further observed that in some of the cases, since ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the same continued up to March 31, 2004." It further observed that : "The other details filed in the paper book clearly show that the commission so debited in the account of sub-brokers is not genuine. In the case of M/s. Dyna Collections, the closing credit balance is Rs.14,13,555 and the same continued up to March 31, 2007. A sum of Rs. 1,84,276 has been written off during the financial year 2003-04. In the affidavit, the proprietor of M/s. Dyna Collections stated that he is an income-tax assessee. However, he has not shown about the extent of income disclosed. No prudent businessman having an income of less than Rs. 40,000 will be keeping the amount outstanding. It is noticed that in most of the cases of the sub-brokers, the credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y be nominal. There is nothing rigid about it. Herein the assessee was receiving some income. He says that it is not his income but his wife's income. His wife is supposed to have had two lakhs of rupees neither deposited in banks nor advanced to others but safely kept in her father's safe. The assessee is unable to say from what source she built up that amount. Two lakhs before the year 1940 was undoubtly a big sum. It was said that the said amount was just left in the hands of the father-in-law of the assessee. The Tribunal disbelieved the story, which is prima facie a fantastic story. It is story that does not accord with human probabilities. . . Science has not yet invented any instrument to test the reliability of the evidence placed ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
