1978 (5) TMI 43

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....n purchases and sales of cotton and cotton seeds etc. It follows Samvat year as the previous year. The relevant previous year is S.Y. 2027 (19th Oct., 1970 to 17th Oct., 1971). On scrutiny of the accounts, the ITO found that the assessee had made total investments of Rs. 15,900 representing under-mentioned items. 1. Purchase of agricultural land Rs. 9,000 2. Purchase of scooter Rs. 3,500 3. ....

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....ed the investments made out of books. Therefore, he brought to tax the said sum as income from undisclosed sources under provisions of s. 69 of the IT Act, 1961. 3. Being aggrieved, the assessee carried the matter in appeal before the AAC. Before him two fold submissions were made. Firstly, that the above investments were not made during the relevant previous year and secondly, this was the firs....

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....hat the aforesaid investments were made on under mentioned dates. 1. Agricultural land Rs. 9,000 23-8-70 2. Scooter Rs. 3,500 20-4-70 3. Oil engine and Charkha Rs. 3,400 15-8-70 & 20-1-70 Now the ITO has proceeded to assess the impugned amount as investments made outside the books. Therefore, the provisions of s. 69 of the Act are clearly applicable. The relevant previous year for the p....

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....ar that the ITO proceeded under the provisions of s. 69 of the Act. It was, in view, incumbent upon the ITO to apply his mind about assessee's ability to the investment of the said amounts with reference to the aforesaid provisions which lay down that the relevant previous year should be the financial year. The assessee has been following the samvat year as its previous year. I do not think that t....