COMMISSIONER OF INCOME TAX Vs. VIDYAGAURI NATVERLAL

JUDGEMENT

(1.) AS required by this Court on an application having been made by the CIT, Ahmedabad under S. 256 (2) of the IT Act, a statement of case has been submitted by the Tribunal, Ahmedabad and following questions of law have been referred for decision of this Court :

(2.) THE original assessee is dead during the pendency of this reference and the legal representatives are brought on record and they have chosen not to appear in spite of notice having been served on them.

(3.) FOR the asst. year 1972 73, in the return filed by the assessee in part III of the return, he disclosed cash credit in his books of account to the extent of Rs. 1,35,000 as monies borrowed from three different persons. During the course of assessment proceedings, explanation about the nature and source of such cash credits were not found to be satisfactory by the Revenue and the same were considered to be income of the assessee for the previous year. As the returned income of the assessee was less than 80% of the assessed income, a presumption arose against the assessee that he has concealed the particulars of his income or has furnished inaccurate particulars for the purpose of its applicability of S. 271 of the Act as it stood then. Proceedings for imposing penalty for concealment of particulars of income or for furnishing inaccurate particulars were initiated against the assessee.