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TMI Blog2014 (4) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... ness of advancing of loan and pawn of ornaments. A search was conducted by the department in the premises of Late Vishram Dhahayat on 25th and 26th of October 1998. In the seizure pawned ornaments with regard to investment an advances amounting to Rs.15,55,150/- were seized along with registers and certain other material. Statements were recorded under Section 132(4) of Shri Vishram Dhahayat and thereafter the said person filed his return of income offering to pay tax of the entire amount of Rs.15,55,150/- after deleting a sum of Rs.1 Lac which was claimed to be an amount available as an earlier capital. With regard to this amount it was explained that earlier capital and investment in the name of his daughter Pushpa Dahayat was included in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erest on the pawned business on accrual basis, the same is unsustainable. It is further stated that the addition of Rs.1 Lacs towards the capital investment in the name of daughter Pushpa Dahayat has also been disallowed in an illegal manner. Further contending that no interest under Section 234B and 234C could be imposed, the arguments were advanced. In support of the contention various Circulars of the department and judgment of the Supreme Court in the case of Chironjilal Sharma (Huf) Vs. Union of India and others - (2013) 263 CTR (SC) 625 and the judgment of Himachal Pradesh High Court in the case of Commissioner of Income Tax Vs. Ruchira Papers Ltd. - (2013)259 CTR (HP) 153 cited. Shri H. S. Shrivastava, learned Senior Counsel took us ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n accepted on the ground that with regard to re-pawned articles there is nothing to show that the same was reinvested by the Assessee. This has also been done based on the material available on record and we see no reason to interfere. As far as imposition of interest under Section 234 B and 234 C is concerned, learned counsel tried to indicate that in the assessment order it is only indicated that interest as per rules be charged. It is said that in the absence of any specific direction for payment of interest, the interest cannot be levyed and in support thereof, the judgment of Himachal Pradesh High Court was proposed into service. In the order passed by the Assessing Officer on 31.3.94 it is indicated that penalty proposing are indicate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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