VIMLASTORE Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) M /s. Vimla Stores a firm deals in agricultural implements, diesel, G. I. pipes, paints, spare parts and hardware, etc. It has three partners, namely, Sri Jagdish Narain and his two brothers. The firm Vimla Stores, hereinafter referred to as the assessee filed return for the assessment year 1996 -97 on August 31, 1996, declaring an income of Rs. 11,193 and seeking refund of Rs. 37,054.

(2.) ON December 13, 1995, the Assessing Officer, Sasaram along with six Income -tax Officers conducted a survey at the business premises of the assessee under the provisions of Section 133A of the Income -tax Act, 1961 (hereinafter referred to as "the Act"). The stock found in the survey was as follows:

(3.) IT is relevant here to state that although the said Jagdish Narain, a partner of the assessee had made that statement during the survey operation but had filed application before the Chief Commissioner of Income -tax on December 15, 1995, in which he has, inter alia, stated that one of the partners of the assessee who was present at the business premises was asked to own unaccounted stock of Rs. 5 lakhs on the threat of being arrested by the police personnel and sealing of the business premises.