1988 (3) TMI 107

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....e earlier Commissioner(A)'s order but this ground was not pressed during the course of hearing and accordingly this ground is treated as dismissed for having been withdrawn. 3. On the factual aspect of 75 High Denomination notes of Rs. 1000 each, the plea of the assessee was that the assessee company filed the declaration with the State Bank ofIndiaon19th Jan., 1978in which it was mentioned that this was from out of the cash that was drawn from the Punjab National Bank. Since Punjab National Bank had stated that they had not issued any high denomination note of Rs. 1000 each, the Department had considered that the declaration made by the assessee that the cash was drawn from Punjab National Bank being falsified, this must be from out of ....

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.... 10th June, 1981, which subsequently having been compounded on 6th April, 1983, the Revenue has been taking the stand that the assessee had admitted guilt while in fact it was so done to purchase peace. At this point of time reference was also drawn to the Board's circular for the limited purpose that though under s. 279(2) powers of compounding had been provided for, the Board had issued instructions that compounding would be given effect to whenever the prospects of a successful prosecution are not good. The plea was that the availability of the cash was not disputed and merely because the Managing Director had initially stated that the amount had come from the bank and later finding it that the bank did not issue them stating that it sho....

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....Revenue's further argument was that the assessee should establish that the amount did come from the customers by providing the necessary evidence. 7. We have given our very carefully considerations to the arguments that have been advanced by the parties. The main issue that is to be considered is whether Rs. 75,000 representing 75 high denomination notes of Rs. 1000 each, was part of the cash balance of the assessee or not. The declaration made to the State Bank ofIndiaon19th Jan., 1978states the source of Rs. 75,000 as under.-"Payments received from banks and customers in the normal course from time to time." The statement by Dr. Jain, the Managing Director of the company recorded by the ADI gives the details about availability of funds....