TMI Blog1990 (1) TMI 140X X X X Extracts X X X X X X X X Extracts X X X X ..... 03 to Sri P.V. Ajmeera in the assessment year 1983-84. The I.T.O. added back these amounts by applying the provisions of section 40(b) and the C.I.T.(A) upheld the inclusion of the same. 2. Before us, the assessee submitted that following the decision of the Andhra Pradesh High Court in N.T.R. Estate v. CIT [1986] 157 ITR 285 as also the decision of the Full Bench of the Madhya Pradesh High Court in CIT v Narbharam Popatbhai Sons [1987] 166 ITR 534, and the Punjab Haryana High Court in the case of Hindustan Steel Forgings v. CIT 1989 Tax LR 996, this disallowance was not warranted. The learned departmental representative, on the other hand, urged that following the decision of the Madras High Court in Dwarkadas Rameshwar Goenka v. CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngs has further relied on the Circular printed at page 127 of 149 ITR (St. portion) under the heading " Reducing Litigation ". The relevant portion of the Circular read as under : " 2. A number of amendments have been made to bring out the legislative intention more clearly so that further controversy and litigation regarding the true intent and purport of these provisions is avoided. To illustrate :-- (b) It has also been clarified that where a person is a partner in his representative capacity, interest paid to him in his individual capacity will not be disallowed under the abovementioned provisions and vice versa. " The Punjab Haryana High Court apart from taking the view that the explanation was clarificatory in nature, held tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 983-84 the addition made was sustained by the C.I.T.(A), but for the assessment year 1984-85 the addition made was deleted by the A.A.C. stating that an ad hoc addition was not warranted. 6. Before me the learned counsel submitted that though similar additions were made in the assessment years 1985-86 and 1986-87, they were deleted in the first appeal and there were no further appeals by the Revenue. It was contended that there was no warrant for making any ad hoc additions and, therefore, the appeal of the assessee should be allowed for the assessment year 1983-84 and the appeal of the Revenue for the assessment year 1984-85 should be dismissed. 7. The learned departmental representative relied on the reasons stated for the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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