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TMI Blog1977 (8) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 12,000 was detected to be with the assessee and that amount was not entered in his books of account. The assessee when asked by the raiding party of the Department, took the stand that that amount belonged to one Sohanlal Sardarmal Jain residing at Teli Galli, Kalbadevi Road, Bombay and that that amount was given to him by that Sohanlal Sardarmal Jain one of his relatives on his way to Bhiwandi, because he had suspected that there would be some trouble in Bhiwandi. Thereafter the assessee and the Sohanlal Sardarmal Jain were examined on oath by the Income-tax Officer on 13the Oct, 1970 and 26th Oct, 1970 respectively. The Income-tax Officer considered those statements and he rejected the case set up by the assessee explaining the sou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en leave for Bhiwandi. The fact that the entry has been made in the middle i.e. after many other entries, shows that the entry is made only after Shri Sohanlal returned from Bhiwandi either in the evening or in the next day to give the colour of genuineness to the statement made by the assessee.It is also not known Assistant to for what purpose he was carrying the money to Bhiwandi. It is also seen from the copies of the cash books of Shri Sohanlal right from 15th Aug, 1970 to 10th Sep, 1970 that Shri Sohanlal has never carried any amounts to Bhiwandi and it is not known Assistant to for what purposes such a huge amount was only being carried on 10th Sep, 1970. If he had been regularly taking such amounts in the past then it would have appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount was handed over by him to the assessee, which statement, according to the assessee was supported by an entry in his books. Another point made out by the assessee before the Appellate Astt. Commissioner was that there was nothing unusual for the Sohanlal to withdraw the above cash of Rs. 12,000 from his books and to take the same to Bhiwandi Assistant in the past he had made payments of large amounts to Bhiwandi parties. On 7th Sep, 1970 he had taken Rs. 23,966 from the Bank and the said amount was paid to Bhiwandi parties. Similarly on 1st Sep, 1970 an amount of Rs. 45,665 was also withdrawn from the Bank and paid to the Bhiwandi parties. It was further urged that the case set up by the assessee finds support from the facts and circ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said order of the Appellate Asstt. Commissioner, the assessee has brought the matter by way of appeal before us. The arguments advanced before us are the same Assistant canvassed by the assessee before the tax authorities. In addition, the learned counsel for the assessee,Mr. Mody. Save after taking us through the statements of Sohanlal and the assessee, has urged that tax authorities have wrongly made the aforesaid addition of Rs. 12,000 inasmuch Assistant the conclusions arrived at by them are based on suspicion. According to Mr. Save, the above statements proved conclusively that the amount of Rs. 12,000 found by the Income-tax Department at the time of the raid on 10th Sept,1970 belonged to Sohanlal. In reply, the Departmental Repr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2) As already stated above, Sohanlal staya at Telli Galli, Kalbadevi Road, Bombay. The business premises of his are also situated there. It is an admitted position that for going to Bhiwandi one has to go from Bombay to Thana. Thereafter one boards a bus for going to Bhiwandi from Thana. It is also admitted that Bombay Thana is on Central Railways and not Western Railways. It is also not disputed that Bombay-V.T. is nearer from Kalbadevi than Churchgate or Marine Lines where from one can board the train on the Western Railways. It is also a fact that Lower Parel is a station on Western Railways and not Central Railways. Of course one can go from Lower Parel to Thana by changing the travel from Western Railways to Central Railways at Dada ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dly. 7. We, therefore, on the facts and circumstances of the case and the material on record, are of the considered opinion that the preponderance of the probabilities is that the said amount of Rs. 12,000 was not the amount belonging to Sohanlal Assistant alleged and that the said amount belongs to the assessee. 8. The assessee for his business in gold and silver ornaments returned a profit of Rs. 9,867. The book results have been rejected by the tax authorities on the ground that the books of account produced by the assessee were not completely closed and no balance-sheet had been filed. They have estimated the profit at Rs. 12,000 against Rs. 9,867 returned by the assessee. 9. We have heard both the learned counsel for the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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