1987 (7) TMI 139

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..... ,05,22,750 which included cash amount of Rs. 23,90,000. In the trading account for the assessment year 1981-82, he disclosed sales of Rs. 43,78,000, which included cash amount of Rs. 25,75,000. The submission of the assessee before the ITO was that the cash amounts in both the years represented amounts received in cash from the parties to whom the show-rooms have been sold, over and above, the price mentioned in the sale agreements, and as such, those amounts represented trading receipts of the business. The ITO requested the assessee's representative to intimate the names of the parties from whom the each item of cash had been received. The assessee had died in 1980. The assessee's representative stated that since the assesses had died, it .....

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..... fficer to assess the said amounts under the head Income from business. The department is now in appeal before us and the common ground for both the years is that the Commissioner of Income-tax (Appeals) had erred in directing the Income-tax Officer to treat the said sums of Rs. 23,90,000 and Rs. 25,75,000 as income from business or profession and not as income from other sources as had been assessed by the Income-tax Officer. 2. We have heard the parties. Section 68 of the Income-tax Act, 1961, on which the Income-tax Officer has relied lays down that where any sum is found credited in the books of an assessee maintained for any previous year and the assessee offers no explanation about the nature and source thereof or the explanation of .....

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..... sessee had two sources of income, one was salary and the other was business of construction and selling of show-rooms in question. There was no other major source of the income of the assessee. The business of construction and selling of flats and show-rooms involved huge turnover. The assessee has filed the paper book giving details of the parties to whom the show-rooms have been sold and the dates of agreements with those parties. The assessee has also given in the paper book the details about the dates on which the cash amounts have been received. He has also filed the balance sheets. The sums in question have been credited in the books of account maintained for the business of construction. In the circumstances, the natural presumption .....

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