INCOME TAX OFFICER Vs. KAMRA TRADING COMPANY

JUDGEMENT

(1.) THIS appeal has been filed by Income Tax Officer, Ward I, Abohar, against Judgment dated 14.8.1997 passed by Chief Judicial Magistrate, Ferozepur, whereby M/s Kamra Trading Company, Abohar, and others were acquitted of the charge under Sections 276, 277 and 278-B of the Income Tax Act (for short, "the Act").

(2.) BRIEFLY stated, the facts are that the appellant filed a complaint against M/s Kamra Trading Company, Abohar, through its partners, namely, Dewan Chand Kamra, Smt. Sangeeta Kamra, Smt. Parkash Wati (now dead) and Smt. Har Devi (now dead) under Sections 276(c), 277 read with Section 278-B of the Act (for short, "the Act") for the assessment year 1986-87.

(3.) IT was further alleged that the said firm filed a return alongwith annexures, declaring the income of Rs. 1,28,050/- on 12.8.1986 and the verification was signed by Dewan Chand Kamra. During the course of assessment proceedings, Income-tax Officer collected information regarding purchase of demand drafts by M/s Kamra Trading Company from Central Bank of India, Abohar in the name of self and its supplier (for payment to them) without entering the same in its account books, which are detailed as under :- Sr. No. Date of Purchase of demand drafts D.D. No. Amount of draft Date in which the demand draft was actually entered in books