9911796707
TMI Blog1999 (10) TMI 571X X X X Extracts X X X X X X X X Extracts X X X X ..... 2( a ) On the facts and circumstances of the case, the ld. CIT(A) has erred in confirming the addition of Rs. 40,000 received as deposits by the appellant from Ms. Bani Dhillon (Rs. 20,000) and Ms. Lagan Dhillon (Rs. 20,000). 2( b ) On the facts and circumstances of the case, the ld. CIT(A) has erred in upholding an addition of Rs. 2938.10 paid as interest to the above depositors on their deposits." 2. Earlier, appeal of the assessee case to be dismissed by C Bench of the Tribunal vide order dated 1-12-1998 but the same was recalled on the application of the assessee by A Bench of the Tribunal vide order dated 11th June, 1999. 3. As regards round No. 1 relevant facts are like this that Assessing Officer while making ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... days mainly devoted for the purpose of business of the assessee out of India in terms of section 37(3) of the Income-tax Act, the expenditure of Rs. 46,180 in travelling to two countries is rather very small and should have been allowed in full. The disallowance of Rs. 10,000 is purely on ad hoc basis without any substance and is contrary to the facts of the case. It was pleaded for deleting the entire addition. 7. The learned DR, on the other hand, submitted that since no details or purpose of travel are given by the assessee during the assessment proceeding, therefore, Assessing Officer was fully justified in making disallowance of the expenditure and ld. CIT(A) before whom certain details were filed has rightly sustained the additi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er before the first appellate authority and it was submitted that this statement of the Assessing Officer is not correct as the photo copies of the bank pass book of the depositors were duly produced by the assessee confirming the source of deposit. This matter has been looked into by various Assessing Officers from time to time and thereafter the order was passed by the present Assessing Officer without giving adequate opportunity to the assessee company to explain his case. Regarding the deposits of Rs. 50,000 in the case of Smt. Gurbachan Kaur, the plea of the assessee was accepted and addition came to be deleted so far as other two deposits of Rs. 20,000 in the name of Ms. Bani Dhillon and Ms. Lagan Dhillon, it was observed by ld. CIT t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... illon, at the most, the deposits can be treated to have been made by them only and not by their grand daughters. In no circumstances whatsoever, the deposits can be treated as cash credits found in the books of the assessee and added to the total income of the assessee. During the assessment proceedings Assessing Officer asked for the affidavits from the two depositors, which were duly produced. The Assessing Officer has observed that the bank pass books of the depositors were not produced which are contradictory to the facts of the case. The photocopies of the bank pass books of the depositors were produced for verification before the Assessing Officer. On being called upon by Assessing Officer to produce the pass books again, the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the orders of authorities below has pleaded that since no adequate evidence was filed before the Assessing Officer, he was justified in treating the deposits to be income of the assessee from the undisclosed sources. It was pleaded for confirmation of order of CIT(A). 15. We have heard rival submissions, perused the record, gone through the orders of authorities below. We have also looked into the case law as relied upon by counsel for the assessee. 16. We, after having considered the arguments of both the sides, going through the record and considering the case law as relied upon, find that assessee had filed copies of bank account of the depositors before the Assessing Officer during the assessment proceedings. Since assessee co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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