1982 (2) TMI 99

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..... riving income from commission and interest, The assessee years involved in these appeals are 1975-76 and 1976-77. The assessee followed the year ended 31st March as his previous year. Formerly, the assessee was assessed to income-tax at Goa upto and including the asst. yr. 1972-73. It appears that no assessments were made for the asst. yrs. 1973-74 and 1974-75 and that the assessee shifted his res .....

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..... letters were filed in support of the loans shown as sundry creditors. In this view of the matter, he proposed to add the sum of Rs. 75,000 in the asst. yr. 1975-76 and Rs. 1,30,000 in the asst. yr. 1976-77 and submitted the draft assessment orders accordingly to the IAC u/s 144B of the IT Act, 1961. 3. Before the IAC, the assessee filed revised Profit Loss Account and balance sheets showing s .....

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..... ause the cash in hand and banks shown at Rs. 8,667 in the original P L Accounts were not prepared with due care and attention and were incorrect and so the assessments should not have been based on such incorrect statements. The CIT (A) considered the above contentions and found that there was material discrepancy between the balance sheets as filed before the ITO and as filed before the IAC whi .....

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..... p. for the assessee, on the other hand, supported the order of the CIT(A). He stated that the earlier P L Accounts were obviously incorrect as was manifest from the figures stated earlier. Further, the assessee was trying to get the confirmatory letters from the creditors but was finding it difficult because of his displacement from Goa to Bombay. He stated that he had since obtained the confirm .....

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..... ee with the CIT (A) that the discrepancy required reconciliation. It cannot be said that the first one was always correct especially when the cash and bank balance therein was less than the bank balance itself. Further, the records of the assessee were not before the ITO and they were relevant materials for determining the capital accumulation in the hands of the assessee. In view of the above rea .....

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