9911796707
TMI Blog1994 (2) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... 82 after the close of the previous year to find out the financial position of that year, when the payments were actually and really made on or after April 2, 1982 on the encashment of the cheque as found by the lower appellate authority and thereby confirming the addition of Rs. 3,43,014 without any corroborative evidence in the hands of the Department that the payments were made on or before March 31, 1982 ? " The facts in this case are that the Assessing Officer added to the income of the assessee a sum of Rs. 3,43,014 "being the amount of cash brought into the books of the assessee as received from the executive engineer by cheque on March 31, 1982" within the previous year 1981-82 corresponding to the assessment year 1982-83, while the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on behalf of the assessee to show that the expenses actually incurred on December 8, 1981 and February 6, 1982 were recorded on March 31, 1982. The Revenue filed an appeal against the order of the Commissioner of Income-tax (Appeals) before the Income-tax Appellate Tribunal who reversed the order of the Commissioner of Income-tax (Appeals) and restored the order of the Assessing Officer in respect of the addition of Rs. 3,43,014 as income from undisclosed sources. In coming to the finding, the Tribunal relied upon the book entries of the assessee as the only acceptable evidence and held that no other subsidiary evidence such as vouchers, etc., could be relied upon. The Tribunal had not gone into the question of the method of accounting reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... intained by the assessee are primary evidence, that payments have already been incurred by the assessee in respect of those specified items for specified amounts and that no other evidence was necessary and, accordingly, the Income-tax Officer was justified in making the addition of the amount. According to him, on the facts and circumstances of the case, the learned Tribunal was justified in reversing the findings of the Commissioner of Income-tax (Appeals) and restoring the order of the Income-tax Officer. We have considered the rival submissions made by learned counsel for the parties. We have also been taken through the three orders relevant to the case on hand. Having perused the same and on hearing counsel, we feel that the learned T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... suspicion and no relevant material could be pointed out by the said authorities for arriving at such a finding. We are, therefore, of the opinion that it would be too remote and far-fetched, on the facts and circumstances of the case, to hold that the vouchers produced by the assessee were not correct and that they were fabricated evidence and, accordingly, we hold that there is no direct nexus between the facts found and the conclusion therefrom. It is settled law that tax authorities, having relied on one part of a transaction, cannot reject the other part of the same transaction. In the instant case, the expenditure shown to have been incurred by the assessee having been accepted by the income-tax authorities, there was no justification ..... X X X X Extracts X X X X X X X X Extracts X X X X
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