9911796707
|
Home
Issues involved: Determination of whether the finding of the Tribunal that the amount of Rs. 16,551 represented the assessee's income from undisclosed sources is based upon any evidence.
Summary: The case involved an assessment year of 1967-68 where the assessee supplied goods to a company and claimed to have received payment in cash on specific dates. However, the company's account books showed that the payment was made by cheque much later. The Income Tax Officer (ITO) concluded that the cash introduced by the assessee was income from undisclosed sources. The Appellate Authority and the Tribunal upheld the decision based on various factors, including the encashment of the cheque by the company's accountant and the lack of cross-examination of key witnesses. The High Court directed a reference to determine if the Tribunal's finding was based on evidence. The High Court analyzed the transactions between the parties and highlighted discrepancies in the payment dates recorded by the assessee and the company. It was argued that the Tribunal's reliance on the bearer cheque and statements of company partners lacked legal evidence. The absence of dates on acknowledgments and the exclusion of cross-examination raised doubts about the validity of the findings. The Court emphasized the importance of evidence in such cases and noted the lack of substantial proof supporting the Tribunal's decision. Furthermore, the Court discussed the application of Section 68 of the Income Tax Act, which allows for the rejection of entries in account books if the explanation provided by the assessee is not satisfactory. In this case, the Court found that the grounds for rejecting the entries were not supported by evidence, leading to the conclusion that the finding was not based on evidence. The judgment highlighted the need for concrete evidence in tax assessments and concluded that the parties would bear their own costs in the matter.
|
