2002 (9) TMI 271 - AT - Income Tax

Summary

Issues involved: Cross-appeals by assessee and Revenue for assessment year 1990-91 challenging the common order of CIT(A), Jodhpur.

Assessee's Appeal (ITA No. 1267/Jp/94):
- Issue: Dispute over addition of Rs. 50,000 on account of surrender in respect of debtors.
- Assessee's Argument: Surrender retracted as no basis/justification provided; relied on various decisions supporting retraction of surrender.
- Revenue's Argument: Addition based on assessee's surrender and revised return filing.
- Judgment: No material to support existence of debtors; surrender retracted and not voluntary; addition deleted due to lack of justification.

- Issue: Dispute over addition of Rs. 26,700 for low withdrawals for household expenses.
- Assessee's Argument: AO's estimate excessive without basis; withdrawals reasonable based on family's statement.
- Revenue's Argument: Supported AO's decision.
- Judgment: AO's estimate excessive and without basis; withdrawals deemed reasonable based on family's statement; addition deleted.

- General Grounds: Grounds 3 and 4 were general in nature.
- Result: Assessee's appeal allowed.

Revenue's Appeal (ITA No. 1405/Jp/94):
- Issue: Dispute over addition of Rs. 16,552 for interest on deposits of assessee's family members.
- Revenue's Argument: Addition made on protective basis; relied on AO's decision.
- Assessee's Argument: Interest income explained for wife and sons; supported by past assessments and finality of matter.
- Judgment: Deletion of addition by CIT(A) found proper and justified; addition not justified; appeal dismissed.

This judgment addressed disputes regarding additions based on surrender of debtors, household expenses, and interest income on family deposits, ultimately ruling in favor of the assessee in the first two issues and dismissing the Revenue's appeal in the third issue.