1978 (2) TMI 137

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..... 29th Dec., 1965. On dissolution of the above firm the assessee received Rs. 10,000 as his capital. The assessee filed certificate from Shri Prabhudayal Jhunjhunwala regarding the receipt of the above amount. With the above amount of Rs. 10,000 the assessee started his own business in the name and style of Ashoke Jewellers at Jharia and he was assessed by the ITO, Ward-A, Dhanbad upto the asst. yr. 1969-70 from the asst. yr. 1967-68. In each of the above three assessment years the assessed income was Rs. 5,000. The assessee stated before the ITO that he had savings of Rs. 14,000 out of the assessed income of Rs. 15,000 for the above three years and then he started the present business at Ramgarh in April, 1973 with initial capital of Rs. 24 .....

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..... hand got substantially decreased. The AAC took the view that the hypothetical figures of stocks shown in the accounts are no indication of the actual stocks and similarly the availability of cash in hand as declared in the balance sheet were also no indication of actual cash in hand because there was no tangible evidence regarding the same. The AAC took the view that under such circumstances the theory regarding the figure of stock account and cash in hand is liable to be overlooked as unproved and necessary action deserves to be taken in the hands of the assessee when any utilisation of the so-called cash is made by the assessee. The AAC held that the assessee continued his ordinary business as usual with brought-forward capital investment .....

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..... en Sons and received Rs. 10,000 on 29th Dec., 1965 on the dissolution of the firm and thereafter the assessee started jewellery business at Jharia and filed return showing income of Rs. 5,000 each year for the asst. yrs. 1967-68 to 1969-70 and the same was accepted by the ITO, Ward-A, Dhanbad and thereafter, the assessee went to Ramgarh and started some business but did not file return as the income was only Rs. 4,000 each year for four years which was below taxable limit. The assessee has also pointed out that his wife was a nurse in the Central Hospital, Dhanbad, and she was getting salary of Rs. 350 per month and the assessee was living in the house of his wife which was provided by the employer and that the assessee had only two child .....

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