9911796707
TMI Blog1988 (11) TMI 124X X X X Extracts X X X X X X X X Extracts X X X X ..... passed on 9th July, 1976 estimating the entire amount of Rs. 3,90,000 as income of the assessee from undisclosed sources which was confirmed by the CIT on appeal. During the regular assessment proceedings the assessee was asked to explain why not the amount of Rs. 3,90,000 will be added to her income from undisclosed sources. The assessee along with her Advocate appeared and filed written submission stating that the amount of Rs. 3,90,000 belonged to the company M/s Luna Consultant P. Ltd. in which the assessee is a director. The assessee stated that on the date of raid there was a cash balance of Rs. 4,03,986.24. The company M/s Luna Consultant P. Ltd. received the cash of Rs. 2,85,000 from Universal Travel Agency on 9th April, 1976 fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is to be noted that the assessment of Universal Travel Agency, Delhi is also completed and the amount of Rs. 3,90,000 has been accepted as paid to Luna Consultancy P. Ltd. (k) Finally, the ITO cannot tax the same amount twice for that would be against the principles of the IT Act. The assessee's counsel drew attention that this amount has already been taxed in the hands of the company of which the assessee is the director and the assessment of the company was completed on 23rd Feb., 1982 under s. 143(3). As this amount has already been taxed and so the same should not be assessed in the hands of the assessee. The assessee has further submitted that if it is taxed without prejudice then the credit for the same should be given to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted that O.P. Bhatia, Proprietor, Universal Travel Agency, Delhi had come Bombay and handed over the cash at Rs. 2,85,000 in three instalments as follows: 8-4-1976 Rs. 50,000 10-4-1976 Rs. 1,25,000 12-4-1976 Rs. 1,10,000 Later on it turned out that it was not O.P. Bhatia who had come to Bombay but his employee Shri Kumar who came to Bombay and handed over cash to the assessee. Again according to the assessee, she received the first instalment on 8th April, 1976 whereas Shri Kumar stated that he gave the first instalment on 9th April, 1976. According to the statement of assessee's husband recorded on 14th April, 1976 Bhatia came to Bombay with an amount of Rs. 2,85,000 on 8th April, 1976. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rated in the books of account on 14th April, 1976 i.e., the date of search though later on entries were passed showing this amount as part of the receipt of Luna Consultant P. Ltd. Entries made by the limited companies subsequent to the date of search operation cannot be considered as conclusive evidence about the true character of the cash which was found in the course of search operation. Regarding Rs. 1,05,000 the assessee has produced passports of 68 persons from whom payments at the rate of Rs. 1,700 per passenger were received. It is claimed that these people had approached the assessee directly for the purchase of tickets. No records have been kept to prove the existence of this huge amount of cash whereas the assessee has stated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd tickets and at that time, he would ask them how much each of them had paid and on the basis of the information given by them he would make entries in the books of account. Manner in which the husband of the assessee sought to write the according was not practical or normal. In the circumstances, the more presentation of affidavits does not advance the case of the assessee any further. The other points submitted by the assessee are not tenable. Under the above circumstances I am of the opinion that the assessee failed to adduce evidence that the amount of Rs. 3,90,000 belonged to the company Luna Consultants P. Ltd. So this amount of Rs. 3,90,000 is treated as income of the assessee from undisclosed sources and is added back under s. 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th statement of one Shri T.R. Kumar have also been perused by us. The assessee has also placed on our file list of recruits along with passports and addressees and certificate issued by Mogul Lines confirming the bookings made by the company— Luna Consultants Pvt. Ltd. We have given our very anxious consideration to the statement recorded under s. 132(4) of the Act, which has been placed on our file as pages 2 to 5 of the assessee's paper book. The assessee was a Director with her husband of M/s. Luna Consultants Pvt. Ltd. The money is claimed to have been accounted for in the books of account of the above company. It is not abnormal in the case of a private limited company where the only directors happen to be husband and wife and carry ..... X X X X Extracts X X X X X X X X Extracts X X X X
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