9911796707
TMI Blog1977 (10) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... the ITO added Rs. 36,000 as an income from undisclosed sources. Against that assessment order an appeal was preferred before the AAC and there the assessee tried to explain that the entry made on September 14, 1962, depositing Rs. 36,000 in the cash book was a bogus entry, because it was made by a " munim " without having the knowledge of certain facts. According to the assessee, on September 11, 1962, an amount of Rs. 36,000 was withdrawn from the current account of the bank, but the same amount was deposited in a fixed deposit for one month. This fact was not in the knowledge of his " munim " and, therefore, a bogus entry was made in the cash book of the firm in the following terms : " Encashment of fixed deposit of Rs. 36,000 which was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before the Tribunal on the said day. The Tribunal then got the books examined by the ITO to ascertain whether there was any debit entry in the assessee's cash book to counter-effect the credit entry of Rs. 36,000 made on September 14, 1962. After a critical examination of the account books a certificate was produced by the ITO before the Tribunal that there was no such entry in the account books of the assessee which could counter-effect the credit entry of Rs. 36,000 made in the account books of the petitioner-firm on September 14, 1962. It may be mentioned here that when the process of the examination of the account books was going on before the Tribunal, nobody on behalf of the assessee cared to present himself before the Tribunal. On t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee's appeal and called them as irrelevant which, according to him, as the evidence which was available to the Tribunal was ignored by it, vitiated the decision about the question of fact whether the entry made on September 14, 1962, depositing Rs. 36,000 in the account books of the petitioner was bogus or not. In this way, according to the learned counsel, a question of law has arisen which should be referred to this court. Mr. Lodha, appearing on behalf of the revenue, on the contrary, submits that this question whether the entry was a bogus one or not was a question of fact and, therefore, no reference in these circumstances can be made before this court. According to him no question of law arises, specially, when the question is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g and it was out of that amount that the payment was made. It may be mentioned that that amount was not entered in the account books of the petitioner-firm and, therefore, the ITO did not accept the explanation given by the assessee. Regarding the fact as to how the cash balance could tally, the explanation given by the assessee-firm was that there are two entries in the account books, one made on January 11, 1963, for Rs. 20,000 and another made on July 31, 1963, for Rs. 16,088.77 which counter-balanced the effect of the alleged bogus entry made by the it " munim " on September 14, 1962, but this explanation was also rejected by the ITO. However, both these explanations found favour with the AAC and the appeal of the petitioner-firm was ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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