1973 (4) TMI 38

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ion 34(1A) were initiated against the assessee. The assessee did not file any return and neither did he comply with the notice under section 22(4) of the Act. The Income-tax Officer, thereafter, proceeded to make an ex parte best judgment assessment. He found that the aggregate sales of cloth and yarn during the period were as under: Assessment year Aggregate sales Rs. 1942-43 1,31,84,180 1943-44 2,27,30,700 1944-45 3,85,46,696 1945-46 3,57,20,882 1946-47 2,05,19,600 1947-48 2,25,56,600 In these years, he held that the dealers in yarn and cloth had made huge profits which were not entered in their books and that in another case of Kanpur, which was comparable to that of the assessee, the secret profits were to the....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ncome had been utilised in the following manner: Rs. 3,28,000 Representing cost of jewellery purchased out of undisclosed income in the accounting year 1943-44. 10,74,000 Introduced in the books of the firm in the form of fictitious sale of jewellery in the accounting year 1944-45. 2,00,000 Representing personal expenses and expenses in marriages in the families of partners incurred out of the firm's secreted income. ------------------------ 16,02,000 ------------------------ The Income-tax Officer, however, made his own estimate of the income of the assessee for the period from 1942-43 to 1947-48, by taking the following facts into consideration: (i) the general market condition during the material period; ....