1966 (9) TMI 28

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....is question may be stated as follows : The assessee is the proprietary of the Eurasian Exports and Imports, Gudur, and Ramana Vilas Mica Mines, Degapudi. The assessment is for the year 1951-52, for which the accounting year ended on July 31, 1950. In the return filed by her, she showed a loss of Rs. 7,273 and after making certain adjustments the registered accountant of the assessee admitted a loss of Rs. 9,591. The Income-tax Officer noticed that a sum of Rs. 8,250 was brought in cash by the assessee in her personal account on various dates from August 17, 1949, to January 21, 1950, and as such he added Rs. 8,050 but we are not in a position to say how he added Rs. 8,050 when he actually noticed a sum of Rs. 8,250. Be that as it may, he....

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....1 and 1951-52 were made out of the sum of Rs. 66,340-12-0 and out of the drawings made in the respective assessment years, namely, 1950-51 and 1951-52, and that the cash on hand on July 31, 1950, was Rs. 56,470-13-11. This letter clearly indicates that the assessee had on July 31, 1950, Rs. 56,470-13-11 in cash and in fact she was having cash on hand during the relevant assment years. The capital account for the period from August 1, 1948, to July 31, 1949, also showed drawings from the Eurasian Exports. On January 31, 1949, a sum of Rs. 1,800, on February 28, 1949, a sum of Rs. 3,000 and on July 31, 1949, a cash of Rs. 4,630-1-2 making a total of Rs. 9,430-1-2 in cash was drawn, between the period from January 31, 1949, to July 31, 1949, a....

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.... kept with this person for being adjusted from time to time is wrong. Further, the Tribunal has stated in its order that : " The assessee has, therefore, neither proved that there was necessity for the money as large funds were available with the firm nor has she proved that there was home chest account from which moneys could be taken and advanced to this firm. In the absence of such proof the treatment meted out to the sum of Rs. 8,050 as unexplained credit and, therefore, undisclosed profit is correct and must stand. " The Tribunal has failed to consider the accounts submitted by the auditor along with his letter dated February 24, 1952, nor did it consider the capital account for the period from August 1, 1948, to July 31, 1949, w....