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TMI Blog1984 (4) TMI 73X X X X Extracts X X X X X X X X Extracts X X X X ..... .T.A. No. 1434(Alld)/1982, the appeal against the quantum of the assessment. The assessee filed a return in the status of a firm. It is the first year of the assessment as, according to the assessee, the business was started on 1st June, 1977. The ITO issued a notice under s. 143(3) of IT Act, 1961, which was duly complied with. It appears that he also asked the assessee to file the details of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance of Rs. 43,000 was uncalled for. 4. After hearing the parties, we are of the opinion that the matter must go back to the ITO. It appears that there are several contradictory statements in the assessment order. While against col. "Section and sub-section under which the assessment is made", s. 144 of the Act has been mentioned, but at the end of the assessment order, is mentioned that the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the contradictions in the assessment. 5. The ITO also noticed credits of Rs. 7,000 and Rs. 3,000 in the names of partner, Smt. Kunti Devi and Shri Suresh Chandra Gupta respectively. These credits were found on the first day of the accounting year i.e., on the day the business had been started in the status of the firm. Smt. Kunti Devi in her affidavit, stated that Rs. 4,000 represented her stri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... partners on the very first day of the business, which were introduced by them as their capital. The assessee could hardly be expected to earn income before it had commenced its business. Although in principle, the assessee was required to explain the source of the amounts, but as a fact it appears that it has discharged its burden in terms of s. 68 of the Act in no only identifying the depositors ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal before us. Since we have set aside the order of the ITO with regard to the application of provision of s. 144 of the Act, the registration on that account can also not be decided. It was further submitted before us by the counsel for the assessee that the ITO was satisfied about the genuineness of the firm and had granted the registration in the asst. yr. 1979-80, which was renewed in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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