2007 (9) TMI 214

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....nd refusal to admit additional/new evidence are correct ? (3) Whether the findings as aforesaid are based on any material on record as according to the appellant the same are contrary to the record and thus are incorrect ?" 2. The facts of the case lie in a narrow compass 3. The assessee was dealing in a wholesale business. He filed a return of income-tax showing total income of Rs. 21,150. In course of assessment proceeding he had purchased bank drafts to the tune of Rs. 12,35,030 from S.B.I., Tenughat, on different dates and Rs. 3,78,000 from S.B.I. Gomia, on different dates. The Assessing Officer directed the assessee to explain the source of investment. By letter dated January 17, 1992, the assessee explained that the drafts di....

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....tted that the Appellate Tribunal has committed serious error of law in holding that a new plea was taken by the assessee that the demand drafts were purchased in the name of his brother Shri Pawan Kumar Jain. As a matter of fact, the assessee since very inception took the plea that the drafts were purchased by his brother Shri Pawan Kumar Jain. According to learned counsel, therefore, the Tribunal ought to have accepted the affidavit field by Shri Pawan Kumar Jain and considered the same. 5. From a perusal of the assessment order it revealed that the assessing authority has dealt with the matter in detail and recorded a finding after giving full opportunity of hearing to the assessee. The relevant portion of the assessment order is repro....

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.... was also brought to the notice of the assessee for his comments. The assessee chose to keep silence on this point. I am, therefore, led to the inescapable conclusion that the assessee had no explanation for the investigation made in the purchase of draft nor could he produce any evidence that those drafts were purchased by him on behalf of his brother and the money spent by him in the purchase of drafts were reimbursed to him by his brother Sri Pawan Kr. Jain. Thus, it is proved beyond doubt that these drafts were purchased by Sri Mahabir Prasad Jain out of his income not disclosed to the Department. I, therefore, tax this amount in the hands of the assessee as income from undisclosed source Rs. 12,35,030. Add Rs. 12,35,030. (Rs. 8,57,030 ....