2004 (7) TMI 18

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... be treated as the income of the assessee from unexplained sources?" - assessee, which is an AOP, runs a store - During the assessment proceedings ITO noticed that the three partners invested Rs. 5,000 each on August 1, 1975, the first day of the accounting period relevant to the assessment year in question. ITO added the entire amount of Rs. 15,000 as income from undisclosed sources - it does app .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... tners on the first day of the accounting period could not be treated as the income of the assessee from unexplained sources?" Briefly stated the facts giving rise to the present petition are as follows: The assessee, which is an association of persons, runs a store in the name of M/s Jaiswal Gram Stores at Jaunpur. During the assessment proceedings for the assessment year 1976-77, the Income-tax .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... as not substantiated. He, therefore, confirmed the order of the Income-tax Officer. The assessee, being still aggrieved, came up in appeal before the Appellate Tribunal. The Appellate Tribunal was of the view that since the assessee had no business prior to the assessment year in question and the deposits were made by the partners on the first day of the start of the business, the question of tre .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... the hon'ble Calcutta High Court in the case of C. Kant and Co. v. CIT [1980] 126 ITR 63. From a perusal of the order of the Income-tax Tribunal, it does appear that the deposit of Rs. 5,000 by each of the partners was made on the first day of the start of the assessee's business. On the first day of the business, it cannot be assumed by any stretch of imagination that the assessee, which is a fi .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... d has been distinguished. In view of the foregoing discussions, we are of the considered opinion that the Tribunal had rightly deleted the addition. Accordingly, we answer the question of law referred to us in the affirmative, i.e., in favour of the assessee and against the Revenue. Since nobody has appeared on behalf of the assessee, there shall be no order as to costs.
Case laws, Decisions, .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X