1992 (2) TMI 46 - HC - Income Tax

Summary

Issues:
1. Inclusion of income from trucks in assessee's income.
2. Ownership of trucks by the assessee.
3. Source of funds for purchasing trucks.
4. Rejection of statements regarding truck ownership.
5. Enjoyment of income from trucks by the assessee.
6. Tribunal's finding based on conjectures and suspicions.
7. Relevance of material considered by the Tribunal.
8. Allegations of running an illicit liquor business.

Analysis:

The High Court addressed various issues in this judgment. Questions 1 to 7 were related to the inclusion of income from trucks in the assessee's income. The Court referred to a previous decision in the assessee's case and found the facts identical. The Court answered negatively against the assessee on questions regarding ownership of trucks, enjoyment of income, and the Tribunal's findings being based on conjectures. The Court answered affirmatively against the assessee on the source of funds for purchasing trucks and relevance of material considered by the Tribunal.

Regarding question 8, the Court discussed the assessee's alleged involvement in an illicit liquor business. The Income-tax Officer estimated income from this business at Rs. 90,000 and added it to the assessee's total income. The Commissioner upheld this view, estimating the turnover at Rs. 6,00,000. However, the Tribunal found it difficult to ascertain the truth due to conflicting statements. The Tribunal estimated sales at Rs. 5 lakhs with a net profit rate of 10%. The Court noted the Tribunal's failure to conclusively establish the existence of an illicit liquor business by the assessee. Consequently, the Court rejected the Tribunal's estimation of income and held that no income from such business should have been added to the assessee's total income. The Court answered question 8 in the negative against the Revenue.

In conclusion, the Court upheld the decision against the assessee on various issues related to truck income inclusion but ruled in favor of the assessee regarding the alleged illicit liquor business income.