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TMI Blog2018 (12) TMI 291X X X X Extracts X X X X X X X X Extracts X X X X ..... elescoping of the credits - Held that:- The Tribunal found that the plea of the assessee for telescoping of the credits to the extent of income added in the business account is reasonable and accordingly, restricted the income to the extent it could not be telescoped with the addition made on account of income from business. We find that the Revenue has not been able to point out before us as to why a similar relief should not be granted in the assessee's case also. Share income/loss from transport business in the bigger HUF and from the business of provisions stores in the name and style of Dhanapal Maligai (smaller HUF) - assessee offered the income in the HUF. However, the Assessing Officer held that it should be assessed in the hands of the individual - Held that:- We find that the Assessing Officer has actually recorded a finding that the assessee became a partner of Dhanapal Maligai, that the capital was ₹ 30,000/- as on 30.6.1986 and ₹ 3.5 lakhs as on 30.6.1987 and that the investment in the firm has not been made out of the HUF funds and there had been no detriment of HUF funds. He further held that the share from Dhanapal Maligai would arise for consideratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the issue of allowing expenditure u/s.37 of Income Tax Act, 1961, in arriving at the taxable income from bus operation for similar bus routes? 2. Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in not holding that the credits in capital account, offered as business income should be telescoped for the purpose of arriving net income and whereby confirmed double addition under head 'business'? And 3. Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in confirming the addition under the head business of sale of paddy and rice without telescoping the credits in capital account, offered as business income for the purpose of arriving net income whereby confirmed double addition under head 'business'? And TCA.Nos.300 and 302 of 2009 : 1. Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in not considering and following the decision of the coordinate Bench of the Tribunal in the case of the appellant s son, while deciding the issue of allowing expenditure u/s.37 of In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 Share income/loss from transport business (B.HUF) Dhanapal Maligai (S.HUF) Q3 Q3 - Q2 challenging addition in individual hand Q2 challenging addition in individual hand 4 Addition under head business sale of paddy rice - - Q3 - - 5. The first substantial question of law, which arises for consideration in all the appeals, is with regard to the estimate of bus income. The Tribunal, in the impugned common order, has not taken note of the decision rendered by it earlier in the case of the assessee's son. So far as the bus income is concerned, the Tribunal observed that in their considered opinion, the estimation of assessee's daily receipt from plying of bus for 173 days at ₹ 1,350/- per day, as worked out by the Assessing Officer and as confirmed by the Commissioner of Income Tax (Appeals), was reasonable and not excessive and accordingly, rejected the contention raised by the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ping of the credits should be done or not were considered by the Tribunal in the assessee's son's case in ITA.No.1483/Mds/93 etc. cases, in which, in paragraph 8, the Tribunal held as follows : The other common issue that arises in these appeals is with regard to the addition made on account of credits in the capital account. The plea of the assessee is for telescoping of the credits to the extent of income added in the business account. This submission of the assessee is reasonable one and we restrict the income to the extent it could not be telescoped with the addition made on account of income from business. 10. The Tribunal found that the plea of the assessee for telescoping of the credits to the extent of income added in the business account is reasonable and accordingly, restricted the income to the extent it could not be telescoped with the addition made on account of income from business. We find that the Revenue has not been able to point out before us as to why a similar relief should not be granted in the assessee's case also. 11. Therefore, we answer this question namely substantial question of law No.2 in TCA.Nos.299, 300 and 302 of 2009 a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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