1979 (8) TMI 102

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....f Rs. 34,000. It was explained that the source of money invested in the purchase of bus came out of the appellant's earlier earnings as transport contractor and agricultural income as member of his family. The ITO rejected the explanation holding that there is no evidence to show that the appellant was having income as transport contractor. The ITO completed the assessment on a total income of Rs.....

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....w rightly. The assessee could not adduce any proof regarding the actual availability of the funds of Rs. 34,000 on the date of purchase of the vehicle. In this context it is significant to note that the assessee was hardly 25 or 26 years of age at the relevant point of time. It is, therefore inconceivable that the assessee carried on the occupation as transport contractor for such a long time as t....

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....indicate the sources of this investment the assessee explained that he was earning commission as transport broker in the past and also having some agricultural income from which he effected savings which were sufficient to enable him to purchase the bus. The ITO, however, held that there was practically no evidence to support the conclusion that the assessee earned Rs. 34,000 as transport contract....

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....ve no hesitation to hold that the Explanation creates a legal fiction whereunder the assessee is straightaway brought within the ambit of s. 271(1)(c) provided that conditions specified therein are satisfied. The mere fact that the total returned income is less than eighty per cent of the total income assessed should be sufficient to bring the case of the assessee within the provisions of s. 271(1....