Guwahati Court October 1980 Judgments

Patoa Brothers Vs. Commissioner of Income-tax

Court: Guwahati

Hansaria, J.1. This tax reference relates to the assessment year 1970-71, and has arisen out of these facts. The assessee is an HUF carrying on business of purchase and sale of watches and repairing them. It appears that the upper floor of the building wherein business was carried on, was used as residence by the assessee. On March 4, 1970, the customs authorities conducted a search of the premises and recovered the following articles :  Rs.(i) 84 Swiss made wrist watches valued at11,384(ii) Hair and main springs valued at19(iii) Indian currency notes for91,6822. A notice under Section 139(2) of the I.T. Act, 1961, for short the Act, wasserved on the assessee on June 5, 1970, and on April 19, 1971, he submitted a return of income of Rs. 4,140. The ITO, however, assessed thetotal income at Rs. 1,02,610 of which Rs. 98,446 was assessed as deemedincome under Section 69A of the Act. This amount of Rs. 98,446 has thefollowing break up :  Rs.(i) Value of 84 Swiss made watches11,3...