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TMI Blog1984 (2) TMI 112X X X X Extracts X X X X X X X X Extracts X X X X ..... of account. He also stated that he had absolutely no evidence to show as to what work he had done on a particular date. The ITO also found that the payment shown in the books was only as an adjustment entry towards the end of the accounting period. He, therefore, disallowed the commission as having actually not been paid for rendering any services. The addition was confirmed both by the AAC and by the Tribunal. 3. There was also a credit of Rs. 6,000 in the account of the assessee's mother-in-law, Mrs. Raj Chaudhary. Mrs. Raj Chaudhary was produced for examination before the ITO. She is the Principal of Degree of College in Kanpur. She also maintained a Savings Bank account, where her entire salary is deposited. Since there were insuffic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Laws (Amendment) Act, 1975 w.e.f. 1-4-1976. The assessment year under appeal being 1977-78, it is this new section which is applicable the cases. The two cases cited by the ld. counsel for the assessee relate to the Expln. to s. 271(1)(c) before it was amended w.e.f. 1-4-1976. Those cases, therefore, have no relevance here and cannot be relied upon for deciding the issue. 7. Explanation 1(B) to the amended section lays down that where in respect of any facts material to the computation of the total income of any person under the Act, such person offers an explanation, which he is not able to sustainable, then the amount added or disallowed in computing the total income of such person as a result thereof shall be deemed to represent the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee, therefore, claimed its allowance not in a bona fide manner. It has, therefore, to be held, in the light of the Explanation referred to above, that she had concealed the particulars with regard to the payment of commission. 8. However, so far as the credit in the name of Smt. Raj Chaudhary is concerned, the charge of mala fide cannot be levelled against the assessee. She was, of course, not able to substantiate that Smt. Raj Chaudhary had deposited Rs. 6,000 with her. However, Smt. Raj Chaudhary being a woman of position might be having some other resources, which might not have been disclosed to the Department. We, therefore, hold that here the explanation offered by the assessee is bona fide. 9. Our finding, therefore, is that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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