1996 (4) TMI 169 - AT - Income Tax

Summary

Issues Involved:
1. Whether the cash of Rs. 25,000 belonged to the assessee's daughter, Mrs. Priya Jaggi.
2. Whether the cash of Rs. 15,000 each belonged to Balwant Juneja and Nanaksing Chug.
3. Whether the cash of Rs. 1,10,000 belonged to the Gurudwara Gurusingh Sabha Building Fund Committee.

Detailed Analysis:

1. Cash of Rs. 25,000 Allegedly Belonging to Mrs. Priya Jaggi:
The assessee claimed that Rs. 25,000 was deposited by his daughter, Mrs. Priya Jaggi, from her personal savings. Mrs. Jaggi confirmed this in her statement and provided evidence of her income from embroidery work. However, the lower authorities did not accept this explanation, citing inconsistencies and lack of immediate disclosure during the search. Mrs. Jaggi was present during the search but did not claim the amount then. The Tribunal noted contradictions in the statements and found the explanation unconvincing. Ultimately, the Tribunal decided to reject the claim that the Rs. 25,000 belonged to Mrs. Priya Jaggi.

2. Cash of Rs. 15,000 Each Allegedly Belonging to Balwant Juneja and Nanaksing Chug:
The assessee claimed that Rs. 15,000 each was deposited by Balwant Juneja and Nanaksing Chug. These claims were supported by confirmations from both individuals. However, the names of these depositors were not disclosed until much later, raising doubts about the credibility of the claims. The Tribunal found the explanations unsatisfactory and noted that the evidence provided was not convincing. The Tribunal concluded that the amounts claimed to be deposited by Balwant Juneja and Nanaksing Chug were not credible and thus rejected the explanations.

3. Cash of Rs. 1,10,000 Allegedly Belonging to Gurudwara Gurusingh Sabha Building Fund Committee:
The assessee claimed that Rs. 1,10,000 belonged to the Gurudwara Gurusingh Sabha Building Fund Committee. The claim was supported by the trust's records, statements from trustees, and an auditor's report. During the search, one of the panch witnesses mentioned the Gurudwara funds, but the search officers did not take cognizance of this claim. The Tribunal found that there was some truth to the claim, supported by the surrounding circumstances and the records of the Gurudwara Sabha. The Tribunal decided to accept the explanation that the Rs. 1,10,000 belonged to the Gurudwara Gurusingh Sabha Building Fund Committee.

Conclusion:
- The Tribunal rejected the explanations regarding the cash of Rs. 25,000 allegedly belonging to Mrs. Priya Jaggi and the cash of Rs. 15,000 each allegedly belonging to Balwant Juneja and Nanaksing Chug.
- The Tribunal accepted the explanation regarding the cash of Rs. 1,10,000 allegedly belonging to the Gurudwara Gurusingh Sabha Building Fund Committee.