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TMI Blog1995 (1) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... penses shown by the assessee were only at Rs. 9,000 for asst. yr. 1986-87 and Rs. 9,600 for asst. yr. 1987-88. Since the assessee's family consisted of four members including school going children, he estimated the expenses at Rs. 36,000, i.e., Rs. 3,000 per month for asst. yr. 1986-87. For asst. yr. 1987-88 he estimated such expenses at Rs. 42,000, i.e., Rs. 3,500 per month. He accordingly made additions of Rs. 27,000 and Rs. 32,400 for asst. yrs. 1986-87 and 1987-88 respectively. 4. On appeal, the learned CIT(A) reduced the additions to Rs. 25,000 for each of the two assessment years. 5. The learned counsel for the assessee submitted that there was no justification on the part of the ITO to make addition on estimate basis. He altern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 3. Shri Devendera K. Patel 7,500 4. Shri Dhirubhai S. Patel 7,500 5. Shri Ashokbhai T. Patel 7,500 . 37,500 It was stated that the above noted five persons belonged to a joint family owning 250 bighas of land at village Salvi, Distt. Baroda. The Assessing Officer called upon the assessee to produce the above noted five persons. Only two persons, viz., Shri Sureshbhai S. Patel and Shri Devendrabhai Patel were produced and their statements were recorded. The contents of statement of Shri Sureshbhai Patel have been summarized by the Assessing Officer in para 6 of his order. Shri Sureshbhai Patel submitted that he belonged to joint family which was quite big and 40 members were stayin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, etc., by the family it was difficult to believe that the family cultivated 250 bighas of land. The Assessing Officer also noted that even if the agricultural income is accepted at Rs. 1 lakh as claimed it is unlikely that family of 40 members is able to save anything for being deposited with the assessee. The Assessing Officer also found that since the persons concerned were educated it was unlikely that they were retaining cash at home. Before, the Assessing Officer it was claimed that the loan had been returned with interest but the Assessing Officer concluded that in the absence of the pass books, it was not possible to verify whether the amounts received back were withdrawn in cash immediately thereafter. He concluded as under: "1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roduced before me to have a different opinion than what has been given by the Assessing Officer in his finding, that the HUF could not have advanced sum of Rs. 75,000 in the names of different members of the family as no evidence was produced in respect of the ownership of the agricultural land, the income earnings therefrom and the savings from the said income. On facts, therefore, the production of certificate from the Corporation Bank or confirmation from the members of HUF by itself would not establish the genuineness of the loans. It is also of interest to note that the amounts have been repaid from the account of shri D.B. Shah found in respect of the loan advanced to Shri Dhaneshkumar B. shah. On facts, therefore, I see no justificat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Paul vs. CIT (1982) 30 CTR (P H) 325 : (1983) 140 ITR 148 (P H) 4. CIT vs. Precision Finance P. Ltd. (1994) 121 CTR (Cal) 20 : (1994) 208 ITR 465 (Cal). 12. We have considered the rival submissions and perused the facts on record. It is a queer case. Here is an assessee who belongs to a well-to-do family; is a partner in two firms dealing in automobiles; has returned an income of Rs. 1,21,010 for the asst. yr. 1986-87; Rs. 92,940 for asst. yr. 1985-86; Rs. 78,030 for asst. yr. 1984-85 and Rs. 80,882 for asst. yr. 1983-84; is assessed to wealth-tax but when it comes to purchasing a small piece of land for a consideration of Rs. 37,500 this rich assessee turns to a not very welll-to-do family of farmers for raising loans. This behaviour ..... X X X X Extracts X X X X X X X X Extracts X X X X
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