9911796707
TMI Blog1979 (4) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... ffirmed that she was doing tailoring work since 1959 and she had earned income of about Rs. 6,500 for the asst. yr. 1975-76 for which the assessment of the assessee was in progress. She had also filed Income-tax return with the ITO, Special Survey Circle, Barnala. 3. The ITO found that in the copy of the account filed by her along with the return of income of the asst. yr. 1975-76, she had shown Rs. 11,000 as cash in hand as on 31st March, 1975. This cash in hand was in addition to the gift of Rs. 20,000 given by her to her husband. The ITO records in the impugned assessment order that in her statement recorded on 14th Oct., 1975 through the Inspector she has stated that she was not having any money with her. According to the ITO, a perusal of the record filed with the Income-tax returns by Smt. Achhro Devi for the asst. yr. 1969-70 to 1974-75, it was seen that she had saved a sum of Rs. 24,000. According to him, the savings shown for the period 1959-60 to 1968-69 were only to the extent of Rs. 7,000. Since she has stated in her statement on 14th Oct., 1975 that she had no money with her at that point of time and since she had shown Rs. 11,000 as cash with her as on 31st March, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the above submissions observed that the ITO did not rebut the Municipal Commissioner's certificate about the income of Smt. Achhro Devi, that he did not bring on record any evidence that the income of the lady was not more than Rs. 1,500 per annum and that the submissions of the assessee of Rs. 20,000 was uncalled for. It was deleted. 7. The revenue contended before us that the wife of the assessee had filed the returns for the asst. yr. 1971-72 to 1974-75 on 5th April, 1975 and return for the asst. yr. 1975-76 had been filed on 30th July, 1975. The assessments in her case for the years 1973-74 to 1975-76 were completed on 6th Feb., 1976 and the assessments for the years 1971-72 and 1972-73 were finalised on 28th Feb., 1977. All the assessments are on protective basis. While thus proceeding with the arguments the Revenue pointed out that in the assessee's paper-book, an affidavit has been filed which was not filed before the authorities below. After hearing the parties on the objection, the objection was upheld and the affidavit filed by the assessee being the affidavit dt. 19th Jan., 1979 shall not form part of the record of the Tribunal. 8. Continuing with the arguments th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ttention to a copy of assessment order for the asst. yr. 1974-75 framed under s. 143(3) on 6th Feb., 1976 in the case of the lady. Copy of this assessment appears at page 4 of the assessee's Paper-book and there from it was pointed out that the ITO accepted the income of the lady at Rs. 5,500 after discussion with the representative of the assessee. It was exphasized that this assessment accepts not only the source of income but the quantum of income therefrom and if the lady could earn income of Rs. 5,500 for the asst. yr. 1974-75, there is no reason to believe why she could not have income to similar extent in the immediately preceding years. In this regard, a reference was made to the copy of the order for the asst. yr. 1971-72 and 1972-73 appearing at page 2 of the paper book for these two years in which, the income assessed by the ITO as income of Smt. Achhro Devi was Rs. 5,200 and Rs. 5,300 respectively. He submitted that income of Rs. 6,500 has been assessed for the asst. yr. 1975-76 in her hand as shown in the assessment order dt. 6th Feb., 1976 appearing at page 5 of the paper book. 12. He then pointed out the certificate of the Municipal Commissioner which had been fil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion, therefore is whether the quantum of income claimed by the assessee's wife from this source is reasonable or not and whether she could save therefrom so as to enable her to gift the amount of Rs. 20,000 to her husband. 15. In this regard, it would be unreasonable to assume that she was earning the same income of Rs. 1500 per annum for all the 16 years it would be quite clear that with the experience she gained from year to year, she could have earned better income. In this context, it is to be seen that when her assessment on the basis of the returns filed by her was taken up, the ITO for the asst. yr. 1974-75 himself records that after discussion, the income returned at Rs. 5,500 is accepted and before he makes this observation, he has recorded that his income is derived by the assessee i.e. Smt. Achhro Devi, insofar as that assessment is concerned, from tailoring and sewing work. Thus, it is clear that the income from tailoring she was earning was shooting up year after year. Therefore, the estimate of the ITO that she was earning only Rs. 1,500 per annum for all these years has to be rejected. 16. She has filed her returns for the asst. yr. 1971-72 to 1974-75 on 5th A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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