TMI Blog1996 (8) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... sment year 1978-79, the assessee was found to have encashed from the Reserve Bank of India 100 pieces of currency notes of Rs. 1,000 denomination on January 24, 1978. As to their source, the assessee took the stand before the Income-tax Officer that those notes were received by it in the course of its business transactions. It was stated that the transactions in the course of which the notes in question were received, were recorded in the Batsari account, By way of explanation for not depositing those high denomination notes at the State Bank of India, it was stated that those notes were sent out to Bhopal, Nanded and other places for making purchases of food-grains, etc., on behalf of the firm. In this regard, it was further stated that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Relying upon a decision of this court in Lakshmi Rice Mills v. CIT [1974] 97 ITR 258, the Commissioner of Income-tax (Appeals) held that the addition of Rs. 1 lakh in the assessee's total income was unjustified and unwarranted and accordingly directed its deletion. The Revenue preferred a further appeal before the Income-tax Appellate Tribunal, making a grievance that the Commissioner of Income-tax had erroneously admitted for consideration a fresh material, that is to say, the Batsari account which had not been produced before the Income-tax Officer. It was also pointed out before the Tribunal that on February 15, 1978, a special survey was conducted on the assessee's business premises and at that time, the assessee had failed to produce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the other hand, the Income-tax Officer examined as many as 10 persons who totally denied having paid high denomination notes to the assessee. Even before us learned counsel for the assessee could not improve his case by production of any evidence or material from which it can be inferred that the assessee received high denomination notes in the regular course of its business transactions. Since the assessee miserably failed to explain the nature and source of Rs. 1 lakh, the Income-tax Officer, in our opinion, was justified in including the sum of Rs. 1 lakh in the assessee's total income under the head "Income from other sources". We, therefore, set aside the order of the Commissioner of Income-tax (Appeals) on this issue and restore that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or rehearing again in due course. Since we have disposed of the defect pointed out by the petitioner which results in recalling the order passed, consideration of other errors has become infructuous. We, therefore, decline to deal with them. In the result, the miscellaneous application is allowed." We have heard Mr. Rastogi, learned counsel appearing on behalf of the petitioner, and we have carefully gone through the two orders passed by the Tribunal. We are of the definite opinion that in passing the impugned order, the Tribunal has veritably sat in appeal over an order passed by its predecessor members, and has plainly exceeded its jurisdiction. Section 254(2) of the Income-tax Act, 1961, empowers the Tribunal to amend any order passe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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