2004 (8) TMI 49

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....vant period? 2. Whether, on the facts and the circumstances of the case, the Tribunal was justified in not considering that the burden lies on the Department to prove that the amount belonged to the assessee it was more so when the four partners had admitted that the amount belonged to them and was consequently justified in holding that the sum of Rs. 52,000 from out of Rs. 92,000 found in the assessee's premises was owned by the assessee?" Briefly stated, the facts giving rise to the present reference are as follows: The applicant is a registered firm. It derives income from selling Banarasi sarees, silk ties, ready-made silk kurtas. For the assessment year 1977-78, the previous year ending on September 2, 1976, the applicant disc....

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....epted by the Income-tax Officer. The remaining amount of Rs. 52,000 was, however, added to the income of the applicant as the explanation offered that the said amount belonged to the four partners in equal shares of Rs. 13,000 each which the partners have saved from their withdrawals and earning and have kept apart for the marriage of their daughters was disbelieved. The appeal filed by the applicant did not meet with any success in respect of addition of Rs. 52,000 and determination of income by best judgment assessment. The applicant preferred a second appeal before the Tribunal. The Tribunal while maintaining the invocation of the provisions of section 145 of the Act, had directed the Income-tax Officer to determine the gross profit at 1....

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....the stock details on daily basis. Thus, the stock position was not verifiable. Under section 145 of the Act, it is open to the Income-tax Officer if he is satisfied that the books of account have not been correctly maintained or are incomplete, to proceed to make assessment under section 144 of the Act, i.e., best judgment assessment. As in the present case, the stock register has not been properly maintained, it did not depict the true and correct picture of stock. Thus, the Income-tax Officer was justified in invoking section 145 of the Act. No exception can be taken on this ground. So far as the addition of Rs. 52,000 to the income of the applicant is concerned, the Tribunal which is the last fact finding authority, has held as follow....

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....is concerned, the withdrawlas of the partners did not justify the same. There was also no evidence to connect that this amount actually came from out of the said withdrawals. In view of the same and having regard to all the facts and circumstances that the assessee had failed to establish the plea put forward on its behalf in this regard. Accordingly, we find no justification for any interference with the order of the learned Commissioner of Income-tax (Appeals). The addition is, therefore, confirmed." Section 69A of the Act deals with unexplained money, etc. It reads as follows: "69A. Unexplained money, etc.-Where in any financial year the assessee is found to be the owner of any money, bullion, jewellery or other valuable article an....