TMI Blog1976 (6) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... s hundi loans and cash credits appearing in its books and the assessment was completed on March 16, 1968. On appeal by the assessee the Appellate Assistant Commissioner set aside the assessment order with a direction to the Income-tax Officer to make a fresh assessment. In the fresh assessment the Income-tax Officer found that the total amount of cash introduced in the books of the assessee in the form of loans and deposits up to the end of Ram Navami Year 2019 came to Rs. 1,88,050. Out of this amount Rs. 30,000 was credited in the accounts of partners in 2018 R. N. and Rs. 20,000 in 2019 R. N. These amounts had already been offered for assessment. The balance amount of deposits which require consideration was Rs. 1,38,050. The assessee did not claim these deposits as genuine loans. Instead, the assessee filed a letter dated 29th January, 1969, stating that it could not conclusively prove these credits and liked to be taxed on these amounts. The assessee further stated in the said letter that these amounts introduced in the books from time to time were profits from the business being carried on by the firm. The assessee, however, requested that necessary credit should be give ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to prove the concealment of income. It is found that the original and the revised returns were filed on September 27,1963, and January 29, 1964, respectively. But the Explanation to section 271 (1)(c) came into force with effect from 1st April, 1964, and the offence, if any, for which the penalty would be imposable was committed before the Explanation came into force. That being the position, we find that the learned Tribunal correctly held that in the instant case the Explanation to section 271(1)(c) could not be invoked. Thus, the burden to prove that there was concealment of income remained on the department. It was submitted on behalf of the department before the Tribunal and the same submission also has been made before us on behalf of the department that the assessee did admit that the amounts in question were its concealed income and, therefore, no further proof or evidence was necessary in the instant case to establish concealment of income. The question whether there was admission of concealment by the assessee was examined by the Tribunal on the materials on record. In support of its submission that there was admission of the concealment of income by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar R. N. 2016 to R.N. 2024 there are cash credits in different names and a complete list of these accounts is being submitted. (2) That same amount is being used by way of introduction and then withdrawal from time to time during all these years. (3) That we cannot conclusively prove these credits and like to be taxed for those amounts. (4) That we have no other business than what have been shown in the returns and those amounts introduced and withdrawn from time to time are profits from those businesses not shown in the accounts...... (6) That the peak credit appears in R.N. 2019 and it is Rs. 1,88,050 out of which Rs. 50,000 was returned as income (Rs. 30,000 in R.N. 2018, and Rs. 20,000 in R.N. 2019) but the income is not of this year only. This is the accumulated undisclosed profits of the years R.N. 2016, 2017, 2018, and 2019 and so the balance of Rs. 1,38,050 may be spread over the years R.N. 2016, 2017, 2018 and 2019...... (9) That in view of the voluntary full disclosure and full co-operation, we pray that due consideration should be given in the matter of penal provision that may be applied as also in the matter of charging interest. (10) That we are now ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibunal also found that there was no evidence to show that these incomes had not been earned in the earlier years but earned in the assessment year concerned. These findings of fact arrived at by the Tribunal go to show that the department failed to prove by evidence that the amounts in question represented the income of the assessee for the relevant assessment year and that these were concealed by the assessee. These findings of fact arrived at by the Tribunal after considering the materials on record have to be accepted in a reference inasmuch as these findings cannot be said to be without materials on record or otherwise perverse. Section 68 of the Act reads as follows : " 68. Cash credits.--Where any sum is found credited in the books of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source thereof, or the explanation offered by him is not, in the opinion of the Income-tax Officer, satisfactory, the sum so credited may be charged to income-tax as the income of the assessee of that previous year. " In its letter dated January 29, 1969, the assessee is found to have resorted to the provisions of section 68, wherei ..... X X X X Extracts X X X X X X X X Extracts X X X X
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