1984 (2) TMI 112

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.... carried on the business in commission agency, he denied having maintained any books of account. He also stated that he had absolutely no evidence to show as to what work he had done on a particular date. The ITO also found that the payment shown in the books was only as an adjustment entry towards the end of the accounting period. He, therefore, disallowed the commission as having actually not been paid for rendering any services. The addition was confirmed both by the AAC and by the Tribunal. 3. There was also a credit of Rs. 6,000 in the account of the assessee's mother-in-law, Mrs. Raj Chaudhary. Mrs. Raj Chaudhary was produced for examination before the ITO. She is the Principal of Degree of College in Kanpur. She also maintained a ....

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..... 271(1) has undergone several changes. A new clause was substituted by the Taxation Laws (Amendment) Act, 1975 w.e.f. 1-4-1976. The assessment year under appeal being 1977-78, it is this new section which is applicable the cases. The two cases cited by the ld. counsel for the assessee relate to the Expln. to s. 271(1)(c) before it was amended w.e.f. 1-4-1976. Those cases, therefore, have no relevance here and cannot be relied upon for deciding the issue. 7. Explanation 1(B) to the amended section lays down that where in respect of any facts material to the computation of the total income of any person under the Act, such person offers an explanation, which he is not able to sustainable, then the amount added or disallowed in computing t....