1985 (8) TMI 31

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....L CHAND MITAL J.-M/s. Himmatram Laxminarain (hereinafter called "the assessee") carried on business in gur and shakkar and also had income from commission agency. For the assessment year l970-7l, in the return filed, the assessee declared income of Rs. 6,660 and the total sales shown therein were of Rs. 33,148. During the assessment proceedings, the Income-tax Officer discovered that the assessee ....

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....to us, we have to opine whether, on the recorded facts, the Tribunal was right in making an addition of Rs. 73,075 under section 69 of the Act. The recorded facts in terms of the order of the Tribunal are as follows : " So far as the addition under section 69 of the Income-tax Act is concerned, the assessee has submitted at the outset that even if an addition under section 69 had to be sustaine....

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....rkash... In other words, from the material on record, it is difficult to hold that the assessee made payments to the Muzaffarnagar party out of the sale proceeds collected by it (in respect of the goods in question) from its customers and that the assessee did not make payments to the Muzaffarnagar party from its own disclosed sources ... The argument of the assessee that in view of the special co....

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....f the assessee had mainly argued that there was no material to justify the finding that the assessee had invested Rs. 73,075 in secret sale transactions. According to the learned counsel, the circulating capital was not more than Rs. 7,000 although the total secret sale transactions were found to be to the tune of Rs. 73,075. This is a separate point and for that matter, the assessee should have a....