9911796707
TMI Blog1984 (8) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... ith other books of account and documents. Sri. A.K. Jaiswal, Inspector of the IT Department, who was directed to be present at the time of search, signed various books of account and documents including the exercise book containing 191 pages and took extracts from the exercise book which were signed by one of the partners of the assessee firm and also the Inspector. 3. In the course of assessment proceedings, the assessee produced various account books signed by the Inspector but when required to produce the exercise book, the assessee claimed that there was no such exercise book. The ITO found that the extracts taken by the Inspector from the exercise book showed that the assessee was doing business outside the books. He further found t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acts taken from the exercise book are fairly detailed and it is impossible to believe that they could have been noted out of imagination. These extracts are also signed by Shri Ram Prakash, partner with the endorsement that the extracts had been taken from the books of the assessee. It is also not possible to believe that this exercise book; was created by some outsider and planted at the time of the search with a view to harass the assessee. No such objection was taken at the time of the search. Even otherwise there is no basis for this allegation. The extracts taken from this exercise book also; show that this exercise book contained transactions with parties with whom the assessee is admittedly having business dealings. The entire circum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e extracts to the Inspector. It was claimed that the partner of the assessee firm did not know English at all and, therefore, he could not detect that in the seizure list there was mention of exercise book in English. It was also urged that the ITO had added an amount of Rs. 25,500 under s. 68 but no cash credit was appearing in the assessee's book. He pointed out that all the concerned parties denied having advanced money to the assessee. Reference was made to the statement made by Sri Ram Prakash Anand, partner of the assessee firm, on oath before the ITO to the effect that there was no existence of any exercise book containing 191 pages from which the IIT took extracts. The AAC again deleted the addition of Rs. 25,000 by observing as und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... recorded a finding of fact that the extracts taken from the exercise book showed that the assessee had business transaction with the parties named in the exercise book. The ld. Departmental representative further pointed out that the Tribunal has categorical by observed that the dates of entries mentioned in the extracts clearly show that the entries related to the accounting year of the assessee for the assessment year under appeal. The ld. Departmental representative, therefore submitted that the AAC should not have tried to make out a case in favour of the assessee about the existence of the exercise book. He vehemently urged that the AAC was wrong; in holding that the action of the ITO in adding back Rs. 25,000 as unexplained cash credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ooks of account they are unexplained. Then only the value of investment is to be deemed to be the income of the assessee for the financial year preceding the assessment year. He urged that the ITO did not care to examine this very important aspect of the matter. The ld. counsel for the assessee urged that the so-called exercise book could not be proved by the ITO to be the book of the assessee and moreover while making the addition of Rs. 25,000, the ITO had not taken into consideration the dates of deposits appearing in the so-called exercise book, extracts of which were taken by the ITI. The ld. Counsel for the assessee placed reliance on certain decisions and urged that sine the ITO failed to make out a case in accordance with the provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which it could be inferred that the assessee discharged its onus. Rather, the assessee was always denying the existence of the exercise book. There was also no satisfactory explanation as to the source of the various credits that were appearing in the assessee's exercise book. The language of ss. 68 and 69 is very clear that where any sum is found credited in the books of account of the assessee maintained for any previous year or where in the financial year immediately preceding the assessment year the assessee has made investments which are not recorded in the books of account and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the ITO satisfactory the sum ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
