9911796707
TMI Blog1996 (7) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... umstances of the case, the Tribunal was lawful to hold that transactions by book entries are not genuine transactions and, therefore, interest payment on debits as a result of such transactions are not allowable as deduction expenditure, specially in the absence of any such observation or finding by the Income-tax Officer to this effect ? " The brief facts of the case are as follows : The asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 000 to the Hindu undivided family of his younger brother, Sri Jag Mohan Gupta. The interest amounts of Rs. 4,500 in the first three accounts and Rs. 4,050 in the fourth account were credited and deduction of the same was claimed by the assessee in computing its total income. The Income-tax Officer did not accept the assessee's claim in view of the provisions of section 40(b) of the Income-tax Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sought for reference to this court of the aforesaid question. On behalf of the assessee, learned counsel referred to the relevant findings of the Tribunal as appear from paragraph No. 19 onwards of the judgment of the Tribunal. The main contention of the assessee is that the Tribunal was wrong in concluding that the transactions of gift were not genuine and they were made only with a view to red ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chandra Mohan Gupta and Man Mohan on the same date and of the same amount. After considering the respective contentions of the parties and perusing the materials available on record, we find that although the accounts of three brothers, namely, Chandra Mohan Gupta, Man Mohan and Brij Mohan Gupta, have been found to have shown credit balances at the opening of the relevant previous year there is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sufficient credit balance in the said three accounts, we are of the view that the said transaction cannot be treated as a genuine one. The question referred herein is, thus, answered in the affirmative and against the assessee. The income-tax reference is, thus, disposed of as above. A copy of this judgment under the seal of this court and the signature of the Registrar shall be forwarded to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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