9911796707
TMI Blog1980 (12) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... The facts giving rise to this reference are as follows : The assessment year in question is the assessment year 1962-63 for which the assessee's relevant accounting year was S.Y. 2017 (October 20, 1960, to November 8, 1961). The assessee, an individual, was doing grocery and money-lending business in the name and style of M/s. Dharmavat Provision Stores. In the course of the assessment proceedings for the assessment year 1962-63, the assessee filed a balance-sheet as at the end of S.Y. 2016, which was the previous year for the assessment year 1961-62, and also a balance-sheet as at the end of S.Y. 2017, the material accounting year. These balance-sheets were filed for the first time before the ITO during the course of the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the provisions of s. 68 of the said Act were rightly applied by the ITO to the case. One other fact which may be mentioned is that the order of the ITO shows that it was found by the ITO that the undisclosed income from the business to the extent of Rs. 26,000 had been brought by the assessee into the capital account. The submission of Mr. Pandit, the learned counsel for the assessee, is that s. 68 of the said Act can be applied only when there is an actual cash credit entry in the account of the assessee for the relevant previous accounting year. It was further submitted by him that an item in the capital account in the balance-sheet does not represent any credit entry for any sum at all but merely reflects the investments in the sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 says " Cash credits ", but it is well-settled law, and this position is not disputed by Mr. Pandit, that the marginal note cannot restrict the plain meaning of the language used in the section itself. It was next contended by Mr. Pandit that even the balance-sheet as at the end of S.Y. 2016 showed the sum of Rs. 26,000 as the balance in the capital account and, hence, it cannot be said that the capital account had gone up by this amount in the relevant accounting year. In our view, this submission cannot be entertained at all. The ITO has disbelieved this balance-sheet and rejected it as untrue. This finding has been upheld by the AAC and the Tribunal. It is not for us to go into the correctness of that finding. Hence, we cannot procee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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