1983 (4) TMI 69

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....see as an Industrial Company. 2. The assessee is a private limited company manufacturing drugs and chemicals. An addition of Rs. 76,705 has been made by the ITO mainly on the ground of certain papers found in the course of a search. The assessee company had entered into agreement with two other companies in respect of preparation of drugs. One of those companies was Unique Pharmaceutical Labora....

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....these two companies to Mrs. Mathias, the department must establish by evidence that the amount received by her, in fact, was the income of the company. There is no evidence at all linking the receipt of the commission with the assessee. The department is placing heavy reliance on the fact that recipient of the commission was the wife of the Managing Director and further that these amounts were in ....

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....-tax Department were interested in the search. Yet, no direct evidence of having received any payments from these companies had surfaced. One could understand the absence of such evidence if the kick-back was an occasional feature. But, according to the case made out by the department, it is a regular running over the years right from 1970. Under these circumstances, one would have expected some s....