9911796707
TMI Blog1981 (2) TMI 98X X X X Extracts X X X X X X X X Extracts X X X X ..... r the first time the assessee started maintaining regular account books and prepared a balance sheet, trading account and profit and loss account for this year. According to these account books, the assessee's capital at the commencement of the previous year relevant to this assessment year amounted to Rs. 66,100. It was claimed before the ITO that this capital was out of the assessed incomes of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O, came to Rs. 38,515. The balance capital, that is, Rs. 27,585 was, therefore held by the ITO to be unexplained and consequently assessee's income from other sources. When the matter went up in appeal, the AAC made his own estimate of the initial capital at Rs. 5,000, the personal expenses at Rs. 1,500 per year for the asst. yrs. 1965-66 to 1973-74 and at Rs. 2,500 for the asst. yrs. 1974-75 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ersonal expenses of the family were met out of the agricultural income and the assessee's income, which was in addition to the agricultural income, was available for investment in the business. He also submitted that in order to earn an income of Rs. 5,000, which was offered for assessment and actually assessed for the asst. yr. 1965-66, the initial capital of Rs. 5,000 estimated by the AAC was to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, justified the addition on account of unexplained capital sustained in appeal by the AAC. 5. We have carefully considered the rival submissions. At the outset, it would be necessary to point out that there is a finding in the assessment order that the returns for the asst yrs. 1965-66 to 1973-74 were filed together for the first time on 4th December, 1973 which were accepted. The Hon'ble Hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income which met part of his expenses. Taking all this into consideration and looking to the totality of the facts and circumstances, we are of the view that the capital to the extent of Rs. 56,000 can be treated to have come out of the income of the earlier years and the balance amount which remains unexplained out of the capital at the commencement of the year in round figure, works out to Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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