9911796707
TMI Blog1993 (4) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... Scheme, 1975, and whether the said decision of the Tribunal is against the provisions of section 9 of the Voluntary Disclosure of Income and Wealth Act, 1976 ?" The assessment relates to the assessment year 1971-72. The assessee is an unregistered firm. The original order of assessment was passed on March 23, 1974, a copy of which is seen in the paper book. By this order, the Income-tax Officer directed a sum of Rs. 54,000 to be added to the income of the assessee as undisclosed income representing purchase of 2,013 bags of potatoes during the previous year and an addition of Rs. 64,000 being concealed trading profit during the year. The assessee filed an appeal before the Commissioner of Income-tax (Appeals) against the above additions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee in his return of purchase of 2,013 bags of potatoes which was found by the Income-tax Officer and not disputed before us. The purchase price was Rs. 54,000. The Income tax Officer, therefore, found that this amount was undisclosed and added the same to the income of the assessee. Before the Commissioner of Income tax (Appeals) passed the order dated November 10, 1975, the Voluntary Disclosure of Income and Wealth Ordinance, 1975, came into force with effect from October 8, 1975. The Ordinance was subsequently replaced by the corresponding Act of 1976 (for short "the Disclosure Act"), which also came into force on October 8, 1975. Section 3 of the Disclosure Act requires disclosure to be made on or before December 31, 1975. The assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t it was reasonable to accept the assessee's plea that the above sum of Rs. 54,000 was out of the disclosed income of Rs. 60,000. The above reasoning and findings are challenged by the Revenue. It is contended by the assessee that the above finding recorded by the appellate authority and the Appellate Tribunal is a finding of fact which cannot be interfered with in a reference. If this finding is based on some evidence, the court of reference may not reappreciate the evidence to come to a different conclusion. The court also will not examine the sufficiency of evidence. If the finding is based on no evidence, the question will not be regarded as a question of fact but one of law. There is no dispute that the only evidence produced by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... time. It was found that these credits were made whenever the assessee fell short of cash. The sum total of the credits appearing in the suspense account was Rs. 1,02,000. The assessee tried to connect the credits in the suspense account with sale proceeds of goods by its Delhi branch. During the process of scrutiny, the assessee made disclosure of Rs. 7,000 for the assessment year 1973-74 and Rs. 15,000 for the assessment year 1974-75 under the Disclosure Ordinance of 1975. It was contended before the High Court that the amount disclosed represented the difference between the sale proceeds of the goods sold at the Delhi branch less the corresponding value of the stocks. That contention was rejected by the authorities and the Tribunal. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsaction in the assessment year 1971-72. The connecting link is absent. Before the appellate authority and the Appellate Tribunal, the assessee failed to place any evidence or material to establish the link. The judgments of the appellate authority and the Appellate Tribunal show that the finding in favour of the assessee was arrived at merely on the basis of a certificate issued under section 8(2) of the Disclosure Act and without any further evidence of the connecting link. The finding, therefore, is based on no evidence. We, therefore, hold that the appellate authority and the Tribunal were not justified in holding that the investment of Rs. 54,000 representing the price of 2,013 bags of potatoes was from the amount disclosed under the D ..... X X X X Extracts X X X X X X X X Extracts X X X X
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