1994 (1) TMI 18

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....g questions of law to this court under section 256(2) of the Income-tax Act, 1961: Question in Matter No. 1865 of 1991: " 1. Whether, on the facts and in the circumstances of the case, the finding of the Tribunal that the assessee as on the date of tender of the high denomination notes worth Rs. 81,000 had always a cash balance far in excess of Rs. 81,000 is perverse being contrary to the ev....

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....rence carried on transport business by rail and road. On January 19, 1978, the assessee tendered and deposited with the State Bank of India, Calcutta, 81 high denomination notes of Rs. 1,000 each. The assessee also furnished a declaration as required at the time of tender of high denomination notes. Columns 15 and 16 of the aforesaid declaration furnished are as under: " 15. Reasons for keeping....

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....he course of assessment proceedings for the year under reference wanted to verify the correctness of the declaration made by the assessee. He sent his inspector to the Mercantile Bank to examine the encashed cheques. The inspector reported that as per notice on the back cheques encashed (sic) no high denomination notes was given to the assessee. When this was put to the assessee, the assessee expl....

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....ned and added the value thereof in the income of the assessee. The action of the Assessing Officer was confirmed in appeal by the Commissioner of Income-tax (Appeals). On second appeal, the Tribunal, after examining the decision of the Supreme Court in Lalchand Bhagat Ambica Ram v. CIT [1959] 37 ITR 288 and that of the Patna High Court in the case of Lakshmi Rice Mills v. CIT [1974] 97 ITR 258,....