TaxTMI 
TaxTMI 
2017 (8) TMI 1137
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...., as noted by Assessing Officer are that appellant had filed return for the Assessment Year 1996-97 on 27-12-1996 declaring total income at Rs. 6,00,570/. The return was processed u/s. 143 (1) (a) of the Income Tax Act, 1961 (for short I. T. Act), the case was taken up for scrutiny. The assessee had got income from rent, share of profit from R. F., Salary and income from other sources. Assessee had also returned the income of his minor children amounting to Rs. 3,15,459/. Notice u/s. 143 (2) of the I. T. Act was issued on 8-07-1998 fixing the date of hearing on 28-07-1998. Nobody appeared on behalf of assessee. A notice u/s. 274 (1) (b) of the I. T. Act was therefore, issued for said default fixing hearing on 781998 and another notice dated....
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....ot attended and then when notices were issued, the assessee took time on the point of preparation. Further information was called from the Assessee through Advocate on 21-01-1999. However, same response was received from the Assessee. It was submitted on behalf of assessee on 11031999, that the loan and interest statement was under preparation and copy of the account of 8 parties from whom loans were taken with confirmations were under preparation. Further opportunity was not given by the Assessing Officer, taking into consideration the response and attitude of the appellant. 4. The facts emerged further were that the assessee had received NIR gift of Rs. 33.82,224/by way of India Development Bonds from one Shri. Ashok Dhirajlal Parikh, wh....
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....nt appeal challenges the said order. 7. It has been vehemently argued on behalf of appellant that Books of accounts have not been maintained by the Petitioner and therefore Sec. 68 of I. T. Act will not be applicable. Though it is a fact that certain amounts were taken by the Petitioner from those persons, yet, when entries of the same have not been taken in the books of accounts, they can not be added to the income of the Appellant for the assessment of tax. These entries have been found by the Assessing Officer on the basis of Bank Statement. No other document was considered by him, before issuing order. Reliance has been placed on the decision in Baladin Ram v/s. Commissioner of IncomeTax, U. P. reported in 1969 (71) ITR 427; wherein it....
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....or reject it". 9. It has been further submitted on behalf of appellant that the authorities below have failed to take into consideration the documents produced by the Appellant. The loan amounts were received by cheques and some of them were in respect of booking of the flats. The booking could not be materialized and therefore, cheques were returned and there was no credit at the end of the year. The amount ought not to have been held to be liable to be added in the income of the Petitioner. 10. Per contra, it has been submitted on behalf of Revenue that the orders passed by the said Authorities are correct. Many opportunities were given to the Appellant to produce relevant document/ documents in order to substantiate and prove his versi....
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....t is doing business, then it was incumbent on him to maintain proper books and/ or books of account. It may be in any form. Therefore, if he had not maintained it, then he can not be allowed to take advantage of his own wrong. Burden lies on him to show from where he has received the amount and what is its nature. Unless this fact is explained he can not claim or have deduction of the said amount from the income tax. Sec. 68 of I. T. Act provides that where the assessee offers no explanation about the nature and source of the credits in the books of account, all the amounts so credited or where the explanation offered by the assessee is not satisfactory in relation to the same then such credits may be charged to tax as income of the assesse....