9911796707
TMI Blog1978 (7) TMI 119X X X X Extracts X X X X X X X X Extracts X X X X ..... isputes between these two groups at appropriate paragraph. Before we do so, it is necessary for us to state that the ITO included Rs. 1 lakh as assessee's income from undisclosed sources when the ITO found deposit of Rs. 1 lakh in the Allahabad Bank on 10th Dec., 1971. The assessee stated that this amount was received as refund from C.P. Ltd. The ITO did not accept this submission of the assessee because the books of account of C.P. Ltd. were not produced before him. The assessee stated before him that the books of accounts were not available as they were taken away by the Coal Mining Authorities. The ITO held that there was no nexus between the withdrawal of money from C.P. Ltd. and deposit in the Bank Account; that there was no necessity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e case it is necessary to know the background which Revenue had not stated in clear terms. It is stated that there was a quarrel between the two groups and the matter went before the High Court. As already stated C.P. Ltd. was a Company controlled by the family members of Goenkas, namely the assessee and Jag Mohan Genka, the assessee's brother. Due to disputes amongst the Directors and the Shareholders, the management of the Company was divided into two groups. In the year 1965 the Company issued 51,000 Equity Shares of Rs. 10 each for the value of Rs. 5,10,000 to the Goenka family; 10,000 shares of Rs. 10 each, i.e. Rs. 1 lakh to K. L. Goenka; 25, 000 shares of Rs. 10 each worth Rs. 2,50,000 to Parmeswari Goenka and 16,000 shares of Rs. 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew Rs. 5,20,000 in cash from Bank of India and out of this amount the Company paid Rs. 5,10,000 in cash to Shri K.L. Goenka, the assessee, Parmeswari Goenka and N.R. Goenka. 4. The assessee contended before us that it is true that allotment of shares was cancelled by the High Court on 14th Aug., 1972 but the assessee realised that there was some irregularity in the issue of shares and that the shares would not be valid in the Court of Law. C.P. Ltd. got the money from the Railway Authorities and the assessee was controlling the Company's Bank Account through his Constituted Attorney, N.R. Goenka. The assessee thought it prudent to withdraw the amount from the Bank Account of the Company and the money was thus distributed among the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount and the amount given by C.P. Ltd. to the assessee on 11th Oct., 1971 and the assessee after getting the amount deposited the same in the Bank Account on 12th Oct., 1971. The amount in question is clearly explained. The motive of withdrawing the money is not a relevant factor in explaining the cash credit. Even if there was a motive it cannot be said that the motive was Mala fide because ultimately it was agreed between the parties that the issue of allotment of 51,000 Shares would stand cancelled and would be deemed to have always stood cancelled. We, thus, delete the addition of Rs. 1.Lakh as income of the assessee undisclosed sources. 6. The assessee has constructed a house property along with his son, S.R. Goenka. Property Accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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