2001 (11) TMI 977 - AT - Income Tax

Summary

Issues involved: Addition of loan amount under section 69A, low yield of dall, excess kachari claimed, and disallowance of batta khata amount.

For the issue of addition of loan amount under section 69A:
The assessee took a loan of Rs. 1 lakh from Ram Kumar Brij Kishore, Kosi, and the Assessing Officer treated the loan as non-genuine under section 69A due to lack of clear source documentation. The Commissioner of Income-tax (Appeals) upheld the addition based on a cash deposit in the creditor's bank account. However, the assessee argued that the loan was genuine, supported by account payee cheques, repayments, and tax deductions. Citing legal precedents, it was contended that the assessee had fulfilled the onus of proving the genuineness of the transaction. The Tribunal agreed, holding that the addition was not justified, and directed the Assessing Officer to allow interest deduction on the loan.

Regarding the low yield of dall:
The Assessing Officer estimated the yield of dall based on comparisons with other mills, leading to an addition of Rs. 62,000. However, the Commissioner of Income-tax (Appeals) deleted the addition, considering the competitive nature of the yield. The Revenue challenged this decision, arguing that comparative cases were overlooked. The Tribunal found that the Assessing Officer's calculation did not consider broken dall, and after adjustments, the yield was competitive. Consequently, the addition was rightly deleted.

Concerning the excess kachari claimed:
The Assessing Officer disallowed a portion of the claimed kachari percentage, but the Commissioner of Income-tax (Appeals) deleted the addition based on precedents and lower claimed kachari percentage compared to Tribunal allowances in similar cases. The Tribunal upheld this decision, stating that the deletion was justified.

Regarding the disallowance of batta khata amount:
The Assessing Officer disallowed a sum debited in the batta khata due to lack of evidence on genuineness. However, the Commissioner of Income-tax (Appeals) deleted the addition, considering it as a representation of short receipt of trading amounts. The Tribunal upheld this decision, finding that the details provided established the nature of the batta khata.