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TMI Blog1978 (5) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... and Sobhraj Chanduram were in the name of the assessee-firm but the transactions were recorded in the names of the minors. 3. On enquiry by the learned ITO, the assessee explained that all the transactions recorded in the names of the minors were really transactions incurred at the instance of the minors. Mainly all the bills and vouchers in respect of such transactions were recorded in the names of the minors. So the profits earned in the names of the minors really belonged to the minors and not to the firm. The learned ITO was of the view that the transactions in question were only shown as benami. According to the learned ITO, in respect of the transactions in question, the management and control as well as finance vested in the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on by the minors. Out of the purchases made on behalf of the assessee, only two bills were in the name of the assessee. The assessee also received interest from the minors on the advance made to them. Thus, it was contended that the profits earned in the names of the minors could not be added in the hands of the assessee. The assessee has also given details of the entire profits earned by the assessee and the minors during the previous year relevant to the assessment-year under consideration. 6. The learned AAC, after considering the evidence on record, was of the opinion that the minor Shri Raj Kumar was of tender age, and as such, he could not enter into any transaction with other parties. He also was of the view that in the present cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bout it. It is correct that in assessment-proceedings it has been found that the profits earned in the names of the minors, were really earned by the firm but in penalty-proceedings the evidence produced by the assessee will have to be appreciated independently. In the books maintained by the assessee, advances were given in the names of the minors including Shri Raj Kumar. On these advances interest was paid to the assessee-firm. Such entries were duly recorded in the books of the assessee. Shri Raj Kumar is also having his regular account books. All the transactions in question are recorded in his books. The profits earned on those transactions are also recorded. Even the books maintained by the assessee show that the transactions in ques ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... maintained separate books of account. In these books of account also the entries in respect of transactions in question were recorded. The profits earned by Shri Raj Kumar were also duly recorded in those books, so, on the basis of such material as discussed above, it could not be said that the assessee concealed any income or furnished inaccurate particulars of its income. The explanation given by the assessee before the authorities below and even before us, is not without any material. On the other hand, it is supported with account books maintained by the assessee and Shri Raj Kumar, separately. The profits earned on the transactions in question were duly shown by the assessee. So it cannot be said that there was concealment of income by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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