1982 (12) TMI 82

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..... ooks of the firm and the same remained unexplained it was assessable in the hands of the AOP as income from undisclosed sources. Thus Rs. 10,000 was added. 3. The assessee appealed before the AAC of IT (AAC for short) that the ITO erred in making the addition in the case of the AOP, whereas the members themselves have shown such income in their individual return and, therefore, the action cannot be sustained That apart, it is submitted that the AOP came into existence on the basis of the agreement made between them dt 1st December 1977, in which it has been stated specifically that the above two parties have been doing business in kerosene and lubricant oils etc. w.e.f. 11th December 1976. It is pointed out that on the very first day of t .....

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..... owned income and declared solemnly that income belonged to them in their respective return. Briefly speaking it is urged that the addition may be deleted. 5. On behalf of the revenue, the ld. departmental representative supports the order of the AAC. It is pointed out that the AAC has correctly applied the provisions of s. 68 in which it is provided that it is the assessee s burden to furnish explanation and to lead evidence in such a situation and if the assessee has failed to do so, the action of the ITO requires to be upheld. It is pointed out that it is immaterial whether the members of the AOP have shown identical sum in their respective return. In short it is urged that the order of the AAC is quite valid and proper and the same is .....

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..... ee derived income from his business in kerosene on retail basis. The ITO noted that the sales were purely in retail and were not supported by any evidence. After considering the facts of the case an addition of Rs. 5000 was made to cover possible leakage profit. On appeal by the assessee, the AAC noted the submissions that as per the order of the collector, the assessee could not charge profit exceeding 3 paise per litre, otherwise the licence would have to be cancelled. The AAC found that the total sale of kerosene was 2,68,907 litres and the profit was shown at Rs. 8,397 that is more than 3 paise per litre, Accordingly, the AAC found no substance in the submissions made on behalf of the assessee, particularly, when the sales were not veri .....

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