1975 (6) TMI 21

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..... presence the money was paid the assessee also stated that the lady did advance the sum of Rs. 10,000 to the assessee. The learned ITO was not convinced with the evidence produced before him. Consequently he held that sum of Rs. 10,000 was income of the assessee from undisclosed sources. The learned AAC agreed with the ITO. Before us on behalf of the assessee it was contended that the assessee produced sufficient evidence before the authorities below for providing the nature and source of the credit and as such the authorities below were not justified in holding that sum of Rs. 10,000 was really incomed of the assessee from undisclosed sources. It was also explained that from the statement of the lady and Shri Gopi Chand it is proved that t .....

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..... e entire statement of the lady and the statement of the Gopi Chand. Their statement is quite consistent and no inherent lacuna was pointed out by the learned Departmental Representative before us. The lady stated in clear words that the pronote was executed by the assessee in his favour. The authorities below do not say that no such pronote was executed by the assessee in favour of the lady. It means that authorities below do not dispute the factum of Execution of the pronote. Once it is found that pronote was executed in view of Negotiable Instrument Act it shall be presumed that the loan was genuine unless shown otherwise. After recording the statement of the lady and of Shri Gopi Chand, the authorities below did not require the assessee .....

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..... his point was not pressed before us. Accordingly, it is decided against the assessee. 8. The next objection of the assessee is regarding the disallowance of Rs. 10,000 towards the income from tanker. The assessee has disclosed expenses of Rs. 1,03,109. The ITO pointed that in the immediately preceding year only expenses were claimed at Rs. 77,442. The learned ITO found that the expenses were unvouched and they were not verifiable. The learned ITO required the assessee to explain the increase in the expenses. It was explained before him that due to general rise, price in respect of goods and labour charges, there was increase in the expenses. The learned ITO after considering the material on record estimated net income at Rs. 10,000. The l .....

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