9911796707
TMI Blog1974 (12) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... me of Chellan Soap Factory. This business was closed down on the last day of the accounting period, i.e., 23rd Nov., 1966 and therefore, the business was carried on by a newly formed partnership styled Chellam Soap Factory consisting of the assessee and his son. Thus for the asst. yrs. 1968-69 and 1969-70 there is no income from this source. 4. We first taken up the appeal for the asst. yr. 1966-67. One of the grounds urged in appeal is against the decision of the AAC sustaining a disallowance of Rs. 500 in respect of betels and nuts. The total expenditure of claimed was Rs. 13,701 under the head bata . The ITO made a disallowance of Rs. 500 for probable inadmissibles. The AAC upheld this as being fair and reasonable. In the absence of e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spareparts were actually fitted on these days. With reference to the collections from the two vans as noted in the ledger at page 343, the contention of the dates of return of the vans to Madurai was sought to be established. Apparently, there was no discrepancy noticed by the AAC in the contention of the assessee that the vans had returned on 21st Nov., 1966 and 22nd Nov., 1966 to Madurai. But the AAC maintained the disallowance on the ground that it was not shown by the assessee that after the spare-parts were fitted in the lorries, they were used in the assessee s business. The expenditure having been incurred on the eve of the transfer of the business to a firm, the AAC agreed with the ITO that it could not be said that the expenditure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vent, we consider that this is a case where on probabilities, the plea of the assessee that the spare-parts were utilised on vans used for its own business can be accepted. We, therefore, delete the addition of Rs. 3,874. 10. The next contention is against the disallowance of a sum of Rs. 3,101 representing advances to staff. The submission of the assessee was that there were a large number of members of the staff, who were getting small salaries and they used to overdraw from time to time. Eventually, salary due to them was adjusted and small balances were written off as recovery could not be enforced. It was the plea of the assessee that the deduction should be allowed on grounds of commercial expediency. The ground on which the ITO mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10,761 under the provisions of s. 64(iii) as arising out of the assets transferred. Here again there is no dispute about the quantum of the amount included. For the asst. yr. 1969-70, the gross income due to the wife was Rs. 15,699 out of this, on the same basis as in earlier years Rs. 11,530 was included under s. 64(iii) as arising out of the transferred assets. Hence again there is no dispute about the quantum of the amount included. The balance of the interest received by the wife in each of the years, i.e. Rs. 2,628 in the asst. yr. 1967-68, Rs. 2,329 in the asst. yr. 1968-69 and Rs. 4,169 in the asst. yr. 1969-70, were stated to be separately assessable in her hands but no separate assessment was made as she had no other income and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income of the assessee s wife included in the assessment was not the assessee s income and, hence would not fall within the terms "his income", as referred to in s. 80A(2)(a) and therefore, in respect of insurance premium paid out of such income relief was not admissible. 12. The assessee appealed to the AAC but without success. The AAC held that the source of payment of the Life Insurance premia should have been the assessee s own income and since this was not the case, the assessee was not entitled to the deduction claimed. 13. The assessee is aggrieved with the decision of the AAC. It was submitted by the learned counsel for the assessee that when the assessee s wife income was included in the assessment of the assessee, it had to be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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