M PAPPU PILLAI Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) IN this appeal under Section 260A of the INcome-tax Act, 1961 (in short "the Act"), the judgment of the INcome-tax Appellate Tribunal, Cochin Bench (hereinafter referred to as "the Tribunal"), is under challenge.

(2.) THE factual position relevant for adjudication of the dispute involved, i.e., whether addition of Rs. 1,50,000 as income from other sources was proper, essentially is as follows : THE assessee is an individual carrying on business in grocery at Kottayam. For the assessment year 1987-88, he filed a return showing total income of Rs. 85,730. THE assessment was completed under Section 143(3) of the Act, determining" the total income at Rs. 2,35,870, which was inclusive of addition of Rs. 1,50,000 as income from "other sources". Such addition was made on the ground that without having sufficient cash balance, expenses were met and the figures were inflated to show availability of higher amounts to cover the expenses met. THE assessee's explanation was that income from agricultural sources was available and by mistake the accountant did not make correct entries about the receipts from agricultural income.

(3.) IN support of the appeal, learned counsel for the assessee submitted that the approach of the Tribunal is legally not sustainable, as the Commissioner of INcome-tax (Appeals) took note of the factual background and directed deletion.