1976 (7) TMI 95

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....,817. The reasons for coming to the above conclusion are given in para 1 of the ITO's order, which is extracted below:- " The assessee who carries on trade in manufacture and sale of art silk sarees, in response to notice u/s. 148, filed his return admitting an income of Rs. 10,053 as originally admitted and assessed. The reassessment was completed on 29th November, 1971 adding an amount of Rs. 18,273 (Later reduced to Rs. 16,817 on appeal) to the income returned. This amount represents the balance due to various weavers from whom the assessee had purchased sarees on credit. On verification the assessee stated at the time of reassessment that these sarees were purchased from one Shri S.P. Subbaraya Pandaram, a street hawker selling saree....

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....presentative on the other hand, contended that when the Tribunal had accepted the finding that there has not been credit purchases and they represented cash purchases for which there was a deficit cash balance, the department had discharged its onus and in view of the explanation to s.271(1)(c) it was for the assessee to establish that there was no failure on its part to return the correct income. 5. We have considered the rival submissions and we have also gone through the order of the Tribunal where the addition has been sustained. We have also gone through the recorded statement of Shri S.P. Subbaraya Pandaram, whose evidence has figured mainly in the assessment proceedings as well as thereafter. On going through the statement of Shri....