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TMI Blog2008 (8) TMI 281X X X X Extracts X X X X X X X X Extracts X X X X ..... d:- 8-8-2008 - R. B. MISHRA and SURJIT SINGH JJ. Vinay Kuthiala and Ms. Vandana Kuthiala for the appellant. Hemant Vaid and K. D. Sood for the respondent. JUDGMENT The judgment of the court was delivered by SURJIT SINGH J. - These two appeals are directed against the same order of the Income-tax Appellate Tribunal and, therefore, they are being disposed of by a common judgment. One appeal has been filed by the Commissioner of Income-tax and the other one by the assessee, namely, Rameshwar Lal Ahuja. 2. The facts relevant for the disposal of the two appeals may be noticed. The residential premises of assessee, Rameshwar Lal Ahuja, were searched and certain seizures were made, as per the provision of section 132 of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 13,19,563 (iii) Investment made in immovable properties as discussed in para No. 7 above 5,55,888 (iv) Addition on account of unexplained investment in immovable properties as discussed in para No. 8 above 5,00,927 (v) Addition on account of low household expenses as discussed in para No. 10 above 8,00,000 (vi) Addition on account of marriage expenses as discussed in para No. 11 above 2,00,000 (vii) Addition on account of investment made in vehicles as discussed in para No. 9 above 1,70,000 (viii) Addition on account of unexplained excess stock found as per para No. 12 above 3,16,372 (ix) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... household expenses during the block period April 1, 1986, to June 20, 1996, and out of that amount a sum of Rs. 3,40,507 had already been shown in the account books to have been withdrawn from two partnership firms, namely, Hotel Unique and Beauty Palace and, therefore, only a sum of Rs. 1,09,493 was required to be added on account of household expenses, but the Assessing Officer made an addition of Rs. 8,90,000 on this count. He also claimed deduction of Rs. 3,00,000 on account of accrual of interest on the fixed deposits, which he claimed to have already shown in his regular returns. The Tribunal accepted all the three pleas. It reduced the amount of household expenses from Rs. 8,90,000, assessed by the Assessing Officer, to Rs. 6,00,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax Appellate Tribunal was right in law in allowing relief of Rs. 1,50,000 on account of interest on FDRs treating the same as to be embedded in the investment in FDRs; whereas the interest received/accrued is also a taxable income." 8. The appeal filed by the assessee was admitted on the following substantial questions of law, vide order dated September 25, 2000 : "1. Whether, the additions sustained by the learned Appellate Tribunal though no material evidence was found during search and seizure in the appellant case, is legally sustainable ? 2. Whether, in the facts and circumstances of the case, the additions sustained in contravention to section 158BB/158BC of the Income-tax Act, 1961, particularly when no cogent material evide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ause during the relevant block period income from interest up to Rs. 12,000 per annum, was exempt from income-tax. Learned counsel for the appellant did not counter this submission. Under these circumstances, it cannot be said that deduction of Rs. 1,50,000 allowed by the learned Appellate Tribunal on account of interest accrued on the amount of fixed deposits and embedded in the fixed deposits, receipts whereof were recovered during the search, cannot be said to be contrary to law or unjustified. Consequently, we hold that the appeal filed by the Revenue is without merit. 12. As regards the appeal filed by the assessee, no material was placed before us indicating that the additions on account of household expenses and marriage expenses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made such admission. Now, if according to the assessee's own saying the amount of Rs. 1,93,000 had been spent on two marriages and one of those two marriages was the marriage of assessee's own daughter, no fault can be found with the order of the Assessing Officer, as modified by the Appellate Tribunal, regarding the addition of Rs. 1,00,000 to the undisclosed income of the assessee on account of marriage expenses of his daughter. 14. It is stated in the grounds of appeal that the Tribunal has allowed deduction on account of interest accrued and embedded in the fixed deposits at the rate of Rs. 12,000 per annum and that at this rate the figure works out at Rs. 3,00,000 for the block period and not just Rs. 1,50,000. 15. The plea is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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