COMMISSIONER OF INCOME-TAX HARYANA, ROHTAK Vs. RAM RUP RADHA KISHAN, FOOD GRAINS DEALERS & COMMISSION AGENTS

JUDGEMENT

(1.) M /s Ram Rup Radha Kishan Foodgrain Dealers and Commission Agents, Hissar, is a partnership concern. Radha Kishan, Jiwan Ram and Manohar Lal are its three partners. The firm deals in foodgrains, cotton seeds (Binola), cotton and gur etc. etc. For the assessment year 1971-72 (accounting year 1970-71) the firm on 14th February, 1972 filed return dated 11th February, 1972 declaring the income of Rs. 38, 159/- and a speculation loss of Rs. 13, 169/-. Copies of profit and loss account, trading account interest account, balance sheet and other statements of account duly signed by its partner Shri Radha Kishan arrayed as accused No. 2 in the complaint filed by the Income-tax Officer A Ward, Hissar, against the firm and its three partners were also filed therewith.

(2.) INCOME -tax Officer, Hissar, detected that the assessee had not shown any profit or loss in Binola (cotton seeds) account, Kapas account and cotton account nor any profit or loss had been shown in cotton and Binola accounts which the assessee might have earned or incurred on account of speculation transactions shown in these two accounts; nor had he shown them in the copies of accounts attached with the return inspite of the fact that the assessee accused had maintained three separate trading accounts. On being asked to work it out, it was revealed that the firm had claimed Rs. 16,726/- as loss in kapas account declared Rs. 7,124,85 and Rs. 5735.75 as profit in speculation business of cotton and cotton seeds respectively and Rs. 7,456.25 and Rs. 27,325,93 as profit in cotton and Binola accounts respectively. Assessment was completed on 2nd March, 1973 by adding an income of Rs. 18,056/- in all the three accounts.

(3.) IN Criminal Appeal No. 35 of 1980 decided on 16th July, 1981 learned lower Appellate Court set aside the conviction of the three accused as also the sentence passed upon them by the learned trial court. All the three accused were, therefore, acquitted by it. Feeling aggrieved therefrom Commissioner of Income-tax Haryana has filed Criminal Appeal No. 204-DBA of 1982 in this Court. Hence the appeal.