TMI Blog1994 (1) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... her, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the addition of Rs. 34,300 representing the payments made by the assessee to Antony and others in connection with the printing of counterfeit hundred rupee notes was based on 'statements of mere witnesses' only and the same would not be a positive proof calling for the said addition and, theref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act as not warranted ?" In respect of the first question, the Appellate Tribunal noted that the addition was made only on the basis of the statements of witnesses in a criminal case and even those statements were not given to the assessee for cross-examination, and those statements were not the basis of the conviction either. The Appellate Tribunal thus found that there was no proof of pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prepared by the Department. Thus, on both the issues, the findings of the Appellate Tribunal that there was no proof of actual expenditure which was required to be explained by the assessee was based on valid materials and has to be upheld. Consequently, the cancellation of the penalty imposed under section 271(1)(c) was also correct. It follows that our answers to all the three questions are in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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