9911796707
TMI Blog2000 (1) TMI 158X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome from stitching of clothes, weaving and hand art work. The AO has levied tax on opening capital shown by the assessee in the balance sheet. The capital as at the end of the year as per balance sheet furnished by the assessee was Rs. 60,152. The balance sheet as on 31st March, 1990 submitted along with return of income for asst. yr. 1990-91 shows that there was a closing capital of Rs. 39,805. A sum of Rs. 22,147 represent profit derived during the year. Out of aggregate amount of Rs. 61,952, withdrawal of Rs. 1,800 was deducted and a closing balance of Rs. 60,152 was left in the capital account. The AO has held that he will accept capital to the extent of Rs. 20,000 as explained and will treat the remaining amount of Rs. 40,152 as unex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he AO could make such addition only in asst. yr. 1990-91 and not in asst. yr. 1991-92. He strongly urged that the order of the authorities below should be cancelled and the declared income should be accepted. 4. The learned Departmental Representative supported the order of the Dy. CIT(A). He pointed out that this is a case of bogus capital formation by the assessee. It is impossible that the ladies of such families will do the work of stitching or preparation of papad, churi etc. Even if such a work is done by ladies of such joint families, they would do it only in the event of family being not able to meet their household expenses out of income of her husband. Therefore, the entire income, if any, was earned by the assessee from stitchin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d deposit and Kisan Vikas Patra, which are verifiable from the balance sheet furnished by her along with the return. A perusal of the said statement indicates that the lady in fact, had done such work of stitching clothes, preparing papad, chuti etc. The quantum of income has been estimated by the AO at a lower figure on the basis of the statement given by the lady, which according to the AO can produce income only to the tune of Rs. 30 per day. The AO has not held that the lady did not carry out such work of stitching of clothes and other labour works as claimed in her statement of income. The return of income filed by the assessee for asst. yr. 1990-91 has been accepted under s. 143(1)(a). Even after completion of the assessment for asst. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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