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Krishna Industrial Corpn. (P.) Ltd. Vs. Commissioner of Income-tax - Court Judgment

LegalCrystal Citation
SubjectDirect Taxation
CourtAllahabad High Court
Decided On
Case NumberIncome-tax Reference No. 39 of 1976
Judge
Reported in[1979]119ITR656(All)
AppellantKrishna Industrial Corpn. (P.) Ltd.
RespondentCommissioner of Income-tax
Appellant AdvocateS.K. Khare, Sr. Adv. and ;R.K. Gulati, Adv.
Respondent AdvocateAshok Gupta, Adv.
Excerpt:
- .....represented the income of the assessee from undisclosed sources ?'2. the facts necessary to answer the question are short. the books of the assessee showed a deposit of rs. 20,000 in the name of kirna devi and bimla devi who were respectively the mother and the wife of one prakash chandra goyal, an erstwhile driver of the assessee. the assessee's contention was that these deposits were genuine and had been made by the ladies from the sale proceeds of their ornaments. the ito did not accept this explanation and treated the deposits as income of the assessee from undisclosed sources. the tribunal has held that prakash chandra goyal was no more a driver of the assessee and has become its transport contractor. thus, although he was not an employee of the assessee, he was intimately.....
Judgment:

C.S.P. Singh, J.

1. The Income-tax Appellate Tribunal, Delhi Bench 'A', has referred the following question for our opinion :

'Whether, on the facts and in the circumstances of the case, there was any material for the finding that the cash credit entries in question represented the income of the assessee from undisclosed sources ?'

2. The facts necessary to answer the question are short. The books of the assessee showed a deposit of Rs. 20,000 in the name of Kirna Devi and Bimla Devi who were respectively the mother and the wife of one Prakash Chandra Goyal, an erstwhile driver of the assessee. The assessee's contention was that these deposits were genuine and had been made by the ladies from the sale proceeds of their ornaments. The ITO did not accept this explanation and treated the deposits as income of the assessee from undisclosed sources. The Tribunal has held that Prakash Chandra Goyal was no more a driver of the assessee and has become its transport contractor. Thus, although he was not an employee of the assessee, he was intimately connected with the business of the assessee. In view of these considerations, it has upheld the inclusion of these amounts in the assessee's income. On the findings recorded the question as to whether the cash credit entries in respect of these two ladies represented the income of the assessee is one of fact. The material relied upon by the Tribunal for reaching its conclusion was relevant for the enquiry. In the circumstances, it cannot be said that there was no material on the basis of which it could have formed that opinion.

3. We, accordingly, answer the question in the affirmative, in favour of the department and against the assessee. The department is entitled to its costs which is assessed at Rs. 200.


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