TMI Blog1977 (7) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 5,157 respectively. Profit and Loss accounts and Balance Sheets for these years were filed, but in view of an alleged fire the books of accounts, stated to be destroyed, were not produced. The ITO in the absence of evidence to support the statement filed made additions of Rs. 3,000 and Rs. 3,500 to the business receipts. In the absence of any amount debited for personal expenses the ITO has e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itions of the employer the assessee had to be retrenched. It was in such circumstances she was forced to start the personal business on a small scale. The full details of the receipts etc. for the business are available even though the books could not be produced since they were destroyed in fire. No omissions, manipulations, etc. have been found out. Merely because the books were not produced an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dence for the destruction of records by fire has been produced. Even though the business was started for the first time, the receipts indicated in the statements on file showed that the business was prosperous; that the assessee had maintained books of account for this year would be clear from the fact that statement indicating this have been filed. The estimates were reasonable. 4. No omissions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gards the increase in the capital account for the second year the assessee had given details about the loans taken from two parties. Nothing has been shown to dis-credit these loans. Looking to the nature and extent of the business the statement filed for receipts, etc. we do not see any justification for upholding another addition of Rs. 5,000 on account of capital. The addition of Rs. 5,000 for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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