TMI Blog1994 (1) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the following questions of law to this court under section 256(2) of the Income-tax Act, 1961: Question in Matter No. 1865 of 1991: " 1. Whether, on the facts and in the circumstances of the case, the finding of the Tribunal that the assessee as on the date of tender of the high denomination notes worth Rs. 81,000 had always a cash balance far in excess of Rs. 81,000 is perverse being contr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er reference carried on transport business by rail and road. On January 19, 1978, the assessee tendered and deposited with the State Bank of India, Calcutta, 81 high denomination notes of Rs. 1,000 each. The assessee also furnished a declaration as required at the time of tender of high denomination notes. Columns 15 and 16 of the aforesaid declaration furnished are as under: " 15. Reasons for k ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the course of assessment proceedings for the year under reference wanted to verify the correctness of the declaration made by the assessee. He sent his inspector to the Mercantile Bank to examine the encashed cheques. The inspector reported that as per notice on the back cheques encashed (sic) no high denomination notes was given to the assessee. When this was put to the assessee, the assessee ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ained and added the value thereof in the income of the assessee. The action of the Assessing Officer was confirmed in appeal by the Commissioner of Income-tax (Appeals). On second appeal, the Tribunal, after examining the decision of the Supreme Court in Lalchand Bhagat Ambica Ram v. CIT [1959] 37 ITR 288 and that of the Patna High Court in the case of Lakshmi Rice Mills v. CIT [1974] 97 ITR 258 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... act finding body. No question of perversity has been raised. Therefore, questions Nos. 1 and 2 in Matter No. 1865 of 1991 are answered in the affirmative and in favour of the assessee. The question in Matter No. 1863 of 1991 is also answered in the affirmative and in favour of the assessee. There will be no order as to costs. ARUN KUMAR DUTTA J.-I agree. - - TaxTMI - TMITax - I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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