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TMI Blog2003 (1) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... 69 and 69B of the Income-tax Act, 1961, he relied upon the decision reported in CIT v. Pratapsingh Amrosingh Rajendra Singh and Deepak Kumar [1993] 200 ITR 788 of the Rajasthan High Court. In the said decision, it was held that there can only be two modes to find out the correct position in respect of the investment, namely, examination of books of account which have been maintained properly and valuation report. If the assessee has maintained proper books of account and all details are mentioned in such books of account, which are duly supported by vouchers and no defects are pointed out and the books are not rejected, the figures shown therein have to be followed. The valuation report can be taken into consideration only when the books o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Indian Evidence Act, 1872, entries in the books of account, regularly kept in the course of business, are relevant whenever they refer to a matter into which the court has to enquire. Section 34 of the Evidence Act has two parts. The first part speaks of relevance of the entries as evidence. The second part speaks of its evidential value. It is necessary upon the person relying on those entries to prove that they were in accordance with the facts. It is to be supported by some other independent evidence. It was so held in Central Bureau of Investigation v. V. C. Shukla, AIR 1998 SC 1406 [1998] 3 SCC 410, 425. In our view, it is not necessary that the books of account are to be rejected. Inasmuch as, section 68 of the Income-tax Act, ess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to explain the nature and source of such entries, Sreelekha Banerjee v. CIT [1963] 49 ITR 112 (SC), 117. Thus, it appears that it is not necessary that the books of account have to be rejected expressly or that it is to be, in express terms, recorded that the books of account are not reliable or the explanation is not satisfactory. It has to be gathered from the order itself whether in effect the Assessing Officer was satisfied with the explanation or had found that the books of account were not reliable. It is not the technical terms, which must appear in the order. It is the substance of the order that the Assessing Officer was not satisfied with the explanation which is relevant. This is apparent from sections 69 and 69B. Where accounts ..... X X X X Extracts X X X X X X X X Extracts X X X X
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