9911796707
TMI Blog1980 (5) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... to the ITO the total claim of interest as claimed by the assessee and allowed by the ITO in original assessment was not justified, in as mush as the assessee had diverted some of the funds for non- business purposes. The ITO, therefore, disallowed a sum of Rs. 42,659 in the re- assessment proceedings taken by him under s. 34(1)(b). The said order was made by the ITO was subject matter of appeal before the AAC and thereafter before the Tribunal, and the Tribunal by its order in ITA No. 515 of 1961-62 and other orders in ITA No. 1417 of 1961-62 and ITA No. 1418 of 1961-62 allowed the appeal of the assessee and quashed the proceedings taken by the ITO under s. 34(1)(b). Thereafter the ITO once again reopened the assessment under provisions of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ani Mewal Dass (1). This contention of the assessee found favour with CITA who relying upon the above cited decision cancelled the re- assessment made by the ITO. 3. Being aggrieved the Revenue has come up in appeal before us challenging the decision of CITA to cancel the reassessment as the ground that proceedings under s. 147(a) of the Act 1961 were not validly initiated. The learned departmental representative after giving full details about the earlier proceedings which we have set out earlier urged before us that the assessee had not furnished primary facts in regard to hundi loans in question, that there was a great lapse on the part of the assessee by not filing the hundi kokas and that the list of hundi loans which was filed by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se: "In original assessment of the respondent for the asst. yr. 1959-60 completed on 23rd Aug., 1960 certain interest paid by it to creditors from whom it claimed to have borrowed moneys on hundies was allowed as deductible expenditure. Subsequently, on 5th Jan., 1968 i.e., after a year, a notice was issued by the ITO to reopen the assessment of the respondent on the ground that the transactions of loans represented by the hundis were bogus and no interest was paid by the respondent to any of the creditors and interest was wrongly allowed. The respondent challenged the validity of the notice by filing writ petition in the High Court. On 3rd Dec., 1968 the ITO in his counter affidavit declined to disclose the facts on the ground that if s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Revenue, we find that the following note recorded by the ITO in course of original assessment proceedings: 28th April, 1958 I had intended to go deep in this case as I was not satisfied with the genuineness of the hundi loans considering the fact that the assessee's borrowings had increased in the course of 3 to 4 years, to Rs. 10 lakhs or more and that mainly on hundis. This point needs a thorough examination before orders are passed for these 2 years of assessment but as I am under orders of transfer the matter may be taken into by my successor. Sd. 28th April, 1958 Report this case to 11th Aug., 1958 11 a.m. Were not notices for 58-59 issued? K.D. Patel appears with accounts, examined see notes and order 11th Aug. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
