1992 (5) TMI 63

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....on of European countries. The assessee was approached by M/s Junach Agencies to carry out study, research, market abroad, develop a range of Hi-Fashion garments, provide samples, ensure quality of the fabric, submit weekly reports, etc. For the said services M/s Junach Agencies agreed to pay Rs. 2.50 lakhs. The travelling and other expenses related to the above which the assessee has to carry out were to be met entirely by the assessee. Such similar contracts were entered by M/s Junach Agencies with the assessee. The Assessing Officer noticed that the assessee has made initial investment of Rs. 200. The cash book contained an investment of Rs. 5,000 which was stated to be out of savings. The Assessing Officer found that all purchases were m....

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....e amounts that were actually received upto June, 1982 should have been considered and not those amounts realised or received from July, 1982 on wards. The Assessing Office as well as the CIT(A) were of the opinion that no real business was done by the assessee and the payments allegedly claimed as having been made or to be made to Designing Survey Consultants, the proprietorship concern of the assessee, by M/s Junach Agencies, a partnership concern, and M/s Junach Pvt. Ltd. Were bogus, hence, the amounts are to be taxed on protective basis in the hands of Mrs. Bina Wadhwa. Accordingly, the addition to the extent of Rs. 9,34,446 which included the amounts that were realised from July, 1982 onwards was also treated as income of the as but on ....