1975 (12) TMI 84

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..... the assessee had not filed a copy of his trading account or the balance sheet on the ground that the account books had been damaged due to the leakage of acid from the cylinder lying close to the box where those books were kept. An affidavit in support thereof was filed. The books of accounts being beyond deciphering, the assessee with the help of the opening balances in his books for the subsequent year reconstructed the balance sheet for the year under consideration and the same was filed as desired by the ITO before him. On the basis of balance sheet so filed, the ITO by the following working noticed that there was an unexplained accretion to the capital account of he assessee to the extent of Rs. 19,000 and added the same to his total .....

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..... sponsible for not explaining the accretion made by the ITO to the capital account of the assessee. May be that the explanation of the assessee in the matter of the said accretion has been disbelieved by the ITO, that by itself would not establish that the amounts so added represent the income of the assessee for the year under consideration. Further, on the facts and circumstances of the case, it cannot be stated that the assessee had consciously concealed his income or the particulars of his income. These pleas of the assessee have been rejected by the IAC, who has also held that the Explanation to s. 271(1)(c) of the Act was attracted in the present case as the income returned was less than 80 per cent of the income assessed and the asses .....

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..... rove that the additions to the capital a/c of the assessee made in the assessment of the assessee for the year under consideration represent Revenue receipts. There is no evidence on record to prove that from the side of the Revenue. Further, as already stated above, the accretion has been made by the ITO on the basis of the reconstructed balance sheet prepared by the assessee on the basis of the opening balances in the account books of the assessee for the subsequent year and that balance sheet was so reconstructed because, admittedly, the books of accounts of the assessee stood damaged by acid and they had become not decipherable. In the presence of these circumstances the assessee was not in a position to satisfy the nature and source fo .....

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