1978 (4) TMI 116 - AT - Income Tax

Issues Involved:
1. Addition of Rs.10,000 for house renovation.
2. Addition of Rs.1,100 for garden land investment.
3. Addition of Rs.8,414 from the father's income.
4. Addition of Rs.9,760 from the brother Philipose's income.
5. Addition of Rs.12,500 from the brother Kuriakose's income.

Issue-wise Detailed Analysis:

1. Addition of Rs.10,000 for House Renovation:
The Income-tax Officer (ITO) believed that the assessee spent Rs.10,000 on renovating a house belonging to his father. The house was assessed in the father's name, and the father admitted to making additions to the house in 1970-1971. The ITO apportioned the renovation cost over three years without a clear basis and relied on an uncorroborated valuer's report. The Tribunal found no evidence to support the ITO's conclusion that the renovation occurred during the relevant accounting year (1st April 1972 to 31st March 1973). Therefore, the addition of Rs.10,000 was deleted.

2. Addition of Rs.1,100 for Garden Land Investment:
The garden land was purchased by the assessee in his own name. Although the assessee was not called upon to explain the source of this investment, his representative did not object to the addition. Hence, the addition of Rs.1,100 was confirmed.

3. Addition of Rs.8,414 from the Father's Income:
The ITO included Rs.8,914 (mistakenly noted as Rs.8,414) from the father's income in the assessee's assessment, suspecting it was the assessee's income. The Tribunal noted that the father filed returns while the assessee was in prison, possibly to create evidence in support of the assessee. However, the ITO did not conclusively prove that the income was the assessee's. The Tribunal emphasized that circumstantial evidence should be conclusive and should not point to any other reasonable possibility. The Tribunal found no material to support the ITO's case and deleted the addition of Rs.8,414.

4. Addition of Rs.9,760 from the Brother Philipose's Income:
The ITO included Rs.9,760 from Philipose's income in the assessee's assessment. The Tribunal found that the ITO relied on circumstantial evidence, which was neither conclusive nor decisive. The Tribunal noted that personal expenses and estimated income are intangible and cannot be used to burden another with tax liability. The Tribunal deleted the addition of Rs.9,760.

5. Addition of Rs.12,500 from the Brother Kuriakose's Income:
The ITO included Rs.12,500 from Kuriakose's income in the assessee's assessment. The Tribunal applied the same reasoning as in Philipose's case, noting the lack of conclusive evidence. The Tribunal found that the income was not established and deleted the addition of Rs.12,500.

Conclusion:
The appeal was allowed in part, with the Tribunal deleting the additions of Rs.10,000, Rs.8,414, Rs.9,760, and Rs.12,500. The addition of Rs.1,100 was confirmed. The assessment was ordered to be revised accordingly.

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