1992 (8) TMI 132 - AT - Income Tax

Summary

Issues Involved:
1. Addition u/s 69 of the IT Act, 1961.
2. Action taken u/s 148 r/w s. 147.
3. Jurisdiction and limitation u/s 153.
4. Charge of interest u/s 139(8)/215 and 217.
5. Taxation of interest on fixed deposits on receipt vs. accrual basis.
6. Additions on account of gifts received.

Summary:

1. Addition u/s 69 of the IT Act, 1961:
The primary controversy in these appeals revolves around the addition made u/s 69 of the IT Act, 1961. During a search operation u/s 132, deposits totaling Rs. 21.67 lakhs were found in the names of the assessee and her minor children. Initially, the assessee admitted ownership of these deposits but later retracted, claiming the deposits did not belong to her. The AO rejected this retraction, noting the assessee's earlier admissions and the involvement of a chartered accountant. The CIT(A) upheld the AO's decision, emphasizing the assessee's initial admissions and the provisions of s. 132(4A). The Tribunal concurred, citing the absence of a satisfactory explanation and the applicability of s. 132(4).

2. Action taken u/s 148 r/w s. 147:
The assessee challenged the action taken u/s 148 r/w s. 147 as irregular. The CIT(A) rejected this ground, noting the assessee's inability to specify the grievance. The Tribunal also rejected this ground as it was not pressed during the hearing.

3. Jurisdiction and limitation u/s 153:
The assessee contended that the assessment was completed beyond the prescribed time limit and lacked jurisdiction. The CIT(A) found that the assessments were completed within the time frame and no jurisdictional error was identified. The Tribunal treated this ground as not pressed, as no submissions were made.

4. Charge of interest u/s 139(8)/215 and 217:
The assessee raised a ground against the charge of interest u/s 139(8)/215 and 217. The CIT(A) observed that the assessee had remedies under the Act and did not provide any findings. The Tribunal rejected this ground as the assessee failed to demonstrate any error in the CIT(A)'s order.

5. Taxation of interest on fixed deposits on receipt vs. accrual basis:
The assessee argued that interest on fixed deposits with NCBE should be taxed on a receipt basis rather than an accrual basis. The tax authorities, guided by the Supreme Court decision in State Bank of Travancore vs. CIT, rejected this claim. The Tribunal noted that this contention was not pursued before it, implying acceptance by the assessee.

6. Additions on account of gifts received:
In the assessment years 1985-86 and 1986-87, the AO made additions for gifts received, amounting to Rs. 63,500 and Rs. 5,000, respectively. The assessee requested that the decision regarding the addition on account of deposits in NCBE be applied to these grounds. The Tribunal upheld the appellate order, dismissing the appeals.

Conclusion:
The Tribunal upheld the CIT(A)'s order, confirming the additions made u/s 69 and dismissing all grounds raised by the assessee. The appeals were dismissed in their entirety.