1989 (3) TMI 62 - HC - Income Tax

Summary

Issues:
1. Assessment year 1960-61: Explanation of cash credit in Smt. Laxmimoyee Sen's account and deletion of the sum.
2. Assessment year 1961-62: Treatment of amount credited to Smt. Laxmimoyee Sen's account as interest on borrowed capital.
3. Assessment year 1962-63: Explanation of cash credit and deletion of the sum along with interest credited to Smt. Laxmimoyee Sen's account.

Assessment year 1960-61:
The Tribunal questioned the nature and source of a cash credit in Smt. Laxmimoyee Sen's account. The Income-tax Officer did not accept the explanation provided by her, resulting in the addition of the sum to the assessee's income. However, the Tribunal considered various factors, including the delay in completing assessments of Smt. Laxmimoyee Sen, her statements regarding the source of funds, and lack of evidence contradicting her explanations. The Tribunal did not find any irrelevant material considered or relevant material ignored. Consequently, the High Court ruled in favor of the assessee, denying the addition of the sum.

Assessment year 1961-62:
For this assessment year, the Tribunal had to determine whether the amount credited to Smt. Laxmimoyee Sen's account represented interest on borrowed capital and should be allowed in computing the assessee's business profits. The Tribunal did not find any irrelevant material considered or relevant material ignored in reaching its decision. As a result, the High Court ruled in favor of the assessee, allowing the treatment of the amount as interest on borrowed capital.

Assessment year 1962-63:
Regarding this assessment year, the Tribunal examined a cash credit in Smt. Laxmimoyee Sen's account and the deletion of the sum along with the interest credited to her account. Similar to the previous assessments, the Tribunal found the explanations provided by Smt. Laxmimoyee Sen satisfactory, considering factors such as her statements and lack of contradictory evidence. The Tribunal did not overlook any relevant material or base its decision on irrelevant factors. Consequently, the High Court ruled in favor of the assessee, denying the addition of the sum and allowing the interest credited to Smt. Laxmimoyee Sen's account. The judgment favored the assessee in all three assessments, with no costs awarded.