9911796707
TMI Blog1980 (2) TMI 124X X X X Extracts X X X X X X X X Extracts X X X X ..... s did not tally, from which the ITO concluded that the accounts had not been properly kept. He also noticed that the transactions regarding payment of additional tax amounting to Rs. 8,275.40 in respect of Radha Talkies and Rs. 14.707.40 in respect of Krishna Talkies were not clear. He, therefore, applied the provisions of s. 145(1) and applying the net rate of 15 per cent on the gross receipts from both the cinema houses estimated the income at Rs. 37,200. Besides that he noticed that the assessee had withdrawn Rs. 41,000 from his capital account and started money-lending business. He asked the assessee to furnish the names of the debtors. The assessee categorically refused to do so, saying that he did not kept any record. Assuming that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... petty cash book, transactions entered wherein not incorporated in its main accounts. It was explained to us by Mr. Atal that this petty cash book related to purchase of entertainment tax tickets which was exclusively the responsibility of the Manager and did not have to do anything with the assessee's profit or loss. Therefore, this account book was not produced before the ITO. The ld. D.R. had not much to say against this argument of the assessee's representative who at the time of hearing showed to us all the details relating to the collection from the two cinema houses and offered to get them reconciled with the certificate of the Excise Officer. It was further pointed out by the representative that these very books of accounts kept in s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the Govt. money relating to entertainment tax which was actually spent as and when it was received from the customers and, therefore, the investment on money-lending, cannot be separated so exactly. 4. The last point relates to income from house property. It has been argued that the same tenant continued to occupy the property and there was no scope for increase in the same. The ITO has also not given any reason for estimating higher rental value. It is a matter of common knowledge that the rent of a tenant cannot ordinarily be increased. The income from house property returned and accepted in the next year is Rs. 4,715 which includes the entire income from the house secured by the assessee, after the death of his father. This year the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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