9911796707
TMI Blog1979 (4) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... increasing year after year and as such the additions made by the learned ITO in this account were quite reasonable. 3. The learned counsel for the assessee submitted that the finding of the learned. AAC is quite correct. Apart from the withdrawals shown by the assessee in three years, the assessee had separately shown other withdrawals for meeting household expenses namely travelling expenses, house rents, gifts made to others, donations and purchase of cloth etc. According to the learned counsel in the asst. yr. 1973-74 the total withdrawals, for meeting of the household expenses were to the extent of Rs. 24,293. It was further contended that in respect of asst. yr. 1974-75 the assessee had disclosed with drawls of Rs. 8,846.90 ps. Apart from it he also showed withdrawals of Rs. 3,751 for paying house-rent. Similarly, in the asst. yr. 1975-76 the assessee had shown withdrawals of Rs. 12,163 for meeting house-hold expenses. Apart from it, the sum of Rs. 2,728 was also showed towards the payment of house-rent. It was also contended that other expenses of marriage, donations and gift etc. were separately debited in the account books maintained by the assessment regularly. It was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(1) the contents of the affidavits which are not vague should be accepted. The learned AAC after considering the evidence on record and circumstances of the case came to the conclusion that no addition was called for. In our opinion the finding of the AAC on this point is quite correct, and no interference is called for. 5. In respect of asst. yr. 1973-74 the learned ITO pointed out that there was opening cash balance of Rs. 11,659. The ITO required the assessee to explain the said opening balance. The assessee prepared cash book for last 8 years on the basis of the books of account maintained by him for earlier years and contended that there was sufficient material to show that there was opening cash balance of Rs. 11,659 and the case was fully explained. 6. The learned ITO was not satisfied with the explanation of the assessee. In his opinion the assessee failed to prove the accretion of the opening balance. Accordingly, the learned ITO made an addition of Rs. 11,659. 7. Before the learned AAC in appeal it was contended that the assessee has produced sufficient material to prove the opening balance in question on the basis of the books of account prepared by the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore us on behalf of the Revenue it was contended that the addition was wrongly deleted. 15. The learned counsel for the assessee contended that these items were duly recorded in the account books of the assessee. They were shown as contribution to the Co-op. Society. Looking to the evidence on record it was not correct on the part of the learned ITO to say that the assessee was not able to explain the investments of Rs. 850. 16. In our opinion the contention of the Revenue has no substance. The expenditure in question was recorded in the account books of the assessee. The learned AAC gave good reasons for deleting the addition. Thus in our opinion there was no justification for making any addition. 17. The learned ITO in respect of asst. yr. 1974-75 pointed out that a search was carried out at the residence of the assessee on 26th Nov., 1974. At that time from the seized material an agreement of sale was found and according to the said agreement the assessee agreed to sell the house property to the vendee for Rs. 1,96,501. According to the learned ITO copy of the agreement was also found at the residence of Shri K.K. Tharwani, the vendee. The learned ITO found that house ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . A registered sale deed was only for Rs. 1,40,000. So the sale deed was proper document which may be helpful in determining the market value of the property on the date of transfer. In acquisition proceedings the assessee agreed that market value of the property on the date of sale may be taken at Rs. 1,85,000. The learned IAC also determined the market value of the property on the date of sale at Rs. 1,85,000, so when the department has taken the market value of the property at Rs. 1,85,000 it does not lie in the mouth of the Revenue to say that the market value of the property should be taken at Rs. 1,96,501. The learned counsel for the assessee further contended that the assessee had shown market value of the property in the relevant year in the wealth-tax return of Rs. 1,08,408. The same was accepted by the Department. Under the circumstances the learned AAC was quite correct in estimating the cost of the property at Rs. 1,08,408. 21. In our opinion, the finding of the AAC on this point is also correct. So called agreement to sale in respect of this property was not signed by the parties. So in the eye of law the said document is not legal evidence. Apart from it on the bas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n they were returned. In proceedings under s. 132(5) of the act it was held that the said gold ornaments belong to the assessee. According to the ITO in proceedings under s. 132(5) of the act the assessee failed to prove the investments in gold ornaments to the extent of Rs. 18,000. The assessee gave written explanation showing that the gold ornaments in question belong to the wife of the assessee and the same were received by her through will executed by her mother. The assessee also explained that in the family of the assessee there was custom to get ornaments at the time of marriage. Copy of the explanation given by the assessee is in the paper book. The learned ITO did not examine the explanation of the assessee. He was of the view that since the addition of Rs. 18,000 was made in the order under s. 132(5) of the act, the learned ITO made the addition of Rs. 18,000 as income of the assessee from undisclosed sources. 24. The learned AAC in appeal deleted the addition. 25. Before the Tribunal the learned D.R. contended that the finding of the AAC is not supported by the cogent evidence on record. The gold ornaments in question were recovered from the lockers belonging to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsupported by the evidence on record. 28. In our opinion, on this point also the finding of the AAC must be upheld. The assessee had given details in his note dt. 15th Oct., 1976. In that note reference of all the evidence showing that the ornaments in question belong to the wife of the assessee were disclosed. There is copy of will which was found at the time of search of the residence of the assessee. In the Will there is mention that the mother of Smt. Lilaben wife of the assessee gave gold ornaments to her. This fact is also supported by the statement of Smt. Lilaben. She was not cross examined on the affidavit. So in view of the ratio of the decision in the case of Mehta Parikh Co.(1), the contents of the affidavits should be accepted. If the learned ITO was not satisfied with the said affidavits he should have cross examined the lady on the affidavits. 29. Similarly there is an affidavit of Smt. Niranjanben. She was also not cross examined. Similarly there is an affidavit of Shri Chunilal. He was also not cross examined on the affidavit. In the annexure-E-11 the assessee clearly stated that these ornaments belong to Smt. Lilaben, wife of the assessee. Such information ..... X X X X Extracts X X X X X X X X Extracts X X X X
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