9911796707
TMI Blog1980 (12) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... d a business styled M/s. Guru Nanak Steel Industries at 257, East Mohan Nagar, Amristar during the accounting year corresponding to the assessment year in issue. He was found to have introduced various sums of cash from 11th Sept., 1970 to 14th Jan., 1971 amounting to an aggregate of Rs. 36,340. The assessee when called to account for the source gave out that the entire investment came from his earnings from Punjab Cycle Stores at Bhopal where he had been a partner from 1973, and also from the settlement amount received from the firm on his retirement as a partner. The ITO found that a cheque for Rs. 3,033 was issued and handed to him in full and final settlement on his account on his retirement from the firm. There was a deposit of Rs. 1,9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een immediately withdrawn and those must have been utilized for meeting the household expenses, keeping in view the size of the appellant's family. The ITO's further observation that if the money out of the previous withdrawals was available with the appellant the same would have been atleast put in the bank account which was at Amritsar appears to be quite sound. Even, if, for any unavoidable circumstances, the appellant could not put his money at Bhopal he could have certainly put the money in the bank account at Amritsar and later on utilized the same for business purposes. On proper perusal of the facts, I, however, feel that the appellant would not have come penniless to Amritsar and some money must have been available with him. Since ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. The amount but they were immediately withdrawn after being deposited. The amounts were never allowed to remain in the account with bank. This showed the assessee had need for the funds and cloud not afford the saving to accumulate. This inference in supported by his failure to put more deposit in his newly opened account with a bank in Amristar after his deposit of Rs. 1,000 on 2nd Nov., 1970. If he had more saving he would not have risked keeping it in cash at home. 6. Having heard both sides we are not inclined to agree with the contentions raised on behalf of the Revenue. The assessee had given out that he was hoodwinked as a partner by his relations in the beginning of his association with Punjab Cycle Stores, Bhopal and found out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. The ITO has not brought any material other than his doubt to throw any suspension on the theory of saving. The AAC himself admitted the fact of saving and allowed him credit for Rs. 3,000. A question arises whether. There was any material to limit the claim to Rs. 3,000 only. If there was such material then disbelieving the claim of the assessee for the rest would be to proceed on the basis of conjecture and surmises. We are, therefore, of the view that the assessee can be credited. With a saving of Rs. 40,000 in the beginning, the accounting year relevant to the assessment year in issue out of which five, six thousand he would have been required to spend on the maintenance. The balance of Rs. 34,000 would have been available for introdu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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