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TMI Blog1990 (8) TMI 137X X X X Extracts X X X X X X X X Extracts X X X X ..... rity to brush aside such plea of the appellant on the basis of some other reliable evidence and, in the instant case, the Competent Authority has not come across some other reliable evidence contrary to the one produced by the appellant. In the absence of any such reliable evidence to the contrary, we, therefore, hold that the Competent Authority was not justified in concluding that the assets in question were illegally acquired property of the appellant. In favour of assessee. - - - - - Dated:- 30-8-1990 - Judge(s) : J. M. TANDON., P. R. RAO., N. P. BHAT ORDER P. R. RAO (Member). -- Ramnath Prasad Banka, the appellant, is the son of Banwarilal Banka who is the brother of Pushkarlal Banka, a detainee under the Conservation of Foreign ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; (ii) closing stock of Rs. 5,865 ; (iii) furniture valued at Rs. 995 and (iv) cash in hand of Rs. 7,076. Prior to the passing of the appellate order by the Tribunal on May 15, 1978, the notices under section 7(1) were served on the appellant. But, subsequently, the appellant became insane and this fact was brought to the notice of the Competent Authority as early as December, 1981. Later, the appellant left his home and has not been heard of since then. All the while, after May 15, 1978, the notices issued by the Competent Authority were received by Banwarilal Banka and he requested that the proceedings be kept pending till his son was traced and was cured of his insanity or, in the alternative, to accept the explanation offered by his so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e first time for the assessment year 1971-72 in respect of the income derived from the business of khadi and handloom cloth which was commenced on April 1, 1970, with an initial capital of Rs. 10,000. He has also found that the appellant was assessed for subsequent assessment years up to 1974-75. It is obvious that there were statements which were filed with the returns of income for the relevant assessment years indicating the initial investment of capital and its growth from year to year, although no books of account were maintained. The khadi and handloom cloth business was closed in the previous year relevant to the assessment year 1973-74 and a new business in kirana goods was started in the same year with the capital available from th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... med the income-tax authorities of his having invested an amount of Rs. 10,000 as initial capital in his business and that no attempt was made by the income-tax authorities to bring that amount to tax. We are of the opinion that it would be reasonable to infer that the source of the investment was accepted by the income-tax authorities as genuine. The learned representative of the Competent Authority has contended that even if such an inference was reasonable, it would not be binding on the Competent Authority in view of the provisions of section 21. No doubt section 21 categorically states that no finding of any officer or authority under any other law shall be conclusive and hence not binding on the Competent Authority. But that does not m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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