MADHAVAN NAIR R Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is a reference under Section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as the Act). The question referred is:

(2.) THE assessment year was 1960-61 and the corresponding accounting period is the year that ended on March 31, 1960. In the assessment for that year the account books of the assessee were rejected and an estimate was made of his income by taking the gross profit to be 6% of the turnover. Further, the Appellate Assistant Commissioner, on the ground that there had been concealment of income, added a sum of Rs. 25,000 and further sums of Rs. 43,400, Rs. 7,911 and Rs. 11,000. In further appeal before the Appellate Tribunal, the amount of Rs. 11,000 was omitted, but the other additions were sustained. We may mention here that the sum of Rs. 25,000 was the value of 471 bags of raw nuts which the assessee had pledged with the bank with which he had accommodation and treating the value of these nuts as the income of the assessee. THE ampunts of "Rs. 43,400 and Rs. 7,911 represented the difference in the value of dosing stock as valued by the assessee and by the assessing authorities.

(3.) IT is not contended before us that concealment need not be established or that deliberate furnishing of inaccurate particulars thereof need not be established before action is taken under the section. IT is, however, urged on behalf of the revenue that the ingredients of the section have been satisfied by the findings entered by the Tribunal. The findings of the Tribunal are contained in paragraphs 19 and 20 of its order, which we may extract in full: