2000 (3) TMI 57

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..... assessee is an individual carrying oil business in grocery at Kottayam. For the assessment year 1987-88, he filed a return showing total income of Rs. 85,730. The assessment was completed under section 143(3) of the Act, determining the total income at Rs. 2,35,870, which was inclusive of addition of Rs. 1,50,000 as income from "other Sources". Such addition was made on the ground that without having sufficient cash balance, expenses were met and the figures were inflated to show availability of higher amounts to cover the expenses met. The assessee's explanation was that income from agricultural sources was available and by mistake the accountant did not make correct entries about the receipts from agricultural income. An addition was as .....

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..... 9. But the opening figure at page 4 was recorded Rs. 97,329.89. Correspondingly, the closing cash balance on April 1, 1986, was inflated to the extent of Rs. 50,000. Similarly, the sum total of receipts at page 8 of the cash book was indicated to be Rs. 1,95,331.38 whereas the actual total was Rs. 1,94,331.38. Cash balance shown on April 2, 1986 is Rs. 454.27. If the figures would not have been inflated, there would have been a negative figure. The sum total of receipts at page 42 is written as Rs. 1,30,562.73 whereas the actual total is Rs. 1,20,562.73. Cash balance shown on April 16, 1986, is Rs. 3,236.92. If inflation would not have been done, cash balance would have been a negative figure. The sum total of receipts at page 125 is writte .....

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..... h was available, there was no reason not to make the credit entries in the names of the members of the family. It was not a case of non-entry of receipts. On the contrary, it was a else or inflation of figures. Further, it was found unbelievable that a pet-son having bank accounts would keep Rs. 2.25 lakhs cash at home. The explanation offered by the assessee was found to be not acceptable. We find that the conclusions are essentially factual and the Tribunal, after having taken note of all relevant aspects, found the explanation regarding inflated entries to be not acceptable. It found that the assessee had not discharged the onus regarding the unexplained cash introduced in the accounts. That being the position, we do not consider this .....

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