TMI Blog1995 (2) TMI 121X X X X Extracts X X X X X X X X Extracts X X X X ..... as obtained from close family relatives of the directors as detailed below: . Rs. (i) Smt. Raj Rani w/o Shri R.G. Mathur 25,000 (ii) Smt. Laxmi Mathur w/o Shri T.C. Mathur 25,000 (iii) Smt. Sushma Mathur w/o Shri V.G. Mathur 25,000 (iv) Smt. Geeta d/o Shri R.G. Mathur 10,000 (v) Smt. Amita d/o Shri V.G. Mathur 6,000 (vi) Smt. Vandana d/o Shri R.G. Mathur 6,000 . 97,000 The AO noted that all the loans were received in cash and none of the creditors is assessed to income-tax or wealth-tax. The AO, therefore, called upon the assessee to explain the nature and sources of the loans when it was explained that the ladies ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mt. Laxmi Mathur, Smt. Sushma Mathur and Smt. Kanta Mathur. The learned CIT(A), however, did not accept the appeal of the assessee on this ground. 4. The learned authorised representative for the assessee submitted that the authorities below were not justified. He submitted that necessary confirmations from all the cash creditors were duly filed along with sources of the amounts deposited. He submitted that in the case of Smt. Raj Rani Mathur, Smt. Laxmi Mathur and Smt. Sushma Mathur they had filed their IT returns disclosing capital gains on sale of agricultural lands when sale consideration was received and disclosed in 1982-83 and necessary orders stood made by the concerned AO determining taxable gains of Rs. 24,210 in each of the thr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me on the statute w.e.f. 1st April, 1984, relevant to asst. yr. 1984-85. The relevant facts as stated in para 10 of the order of the learned CIT(A) are that in the period relevant to asst. yr. 1982-83 the assessee had realised sales-tax of Rs. 52,245 and in turn had paid Rs. 14,500 on this account while the balance of Rs. 37,745 was debited to P L account as provision. The AO allowed a sum of Rs. 9,000 out of this provision for sales-tax for six months period from Febraury, 1981 to August, 1981 at the average rate of Rs. 1,500 p.m. and added the remaining amount of Rs. 28,500 having not been paid during the relevant previous year. The learned CIT(A) confirmed the addition when he took the view that having realised sales-tax and having not p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before it subject to the restrictions or limitations, if any, prescribed by the statutory provision. In the absence of any statutory provision the appellate authority is vested with all the plenary powers which the subordinate authority may have in the matter. Therefore, we admit the additional ground of appeal taken by the assessee. 6.3 Having heard the learned representatives on the merit of the issue we are of the view that the addition made is not justified, inasmuch as, the assessee has offered the amount of sales-tax collected as a part of its income and as a corollary has taken unpaid amount to its balance sheet by debit to its P L account. The claim is in accordance with the method of accounting followed by the assessee, as also b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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