9911796707
TMI Blog2007 (10) TMI 444X X X X Extracts X X X X X X X X Extracts X X X X ..... g the material placed on record. 2. We have gone through the orders of the lower authorities and found that addition was made by the Assessing Officer by invoking the provisions of section 59(1) of the Act. In respect of loan liability shown by the assessee in her balance sheet, the Assessing Officer observed that in some of the cases, the assessee had not filed confirmation or there is some difference in the amount shown by these persons in their respective statement of account. The Assessing Officer, therefore, invoked section 59(1) of the Act and added a sum of Rs. 5,25,764 on account of liability outstanding as payable to Shri B.L. Khurana Rs. 69,630, Shri Ankush Khurana Rs. 1,91,301, Shri Akash Khurana Rs. 49,080 and Shri Ravi Khurana ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng liabilities in respect of which any deduction or allowance was made in computing the income from other sources in the earlier years. These liabilities are in the nature of loan liabilities which do not fall within the purview of section 59(1), read with section 41(1) of the Act. While invoking provisions of section 59(1), the onus is on the revenue to first establish that assessee has taken benefit of deduction of any such liability in any of the earlier years and which has now ceased to exist. In the present case, no finding has been recorded by the Assessing Officer with regard to the year in which the assessee has taken benefit of deduction of these liabilities while computing her income in any of the earlier previous year. Undisputed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ility of the provisions of section 59(1), read with section 41(1) of the Act. 5. In view of the above discussion, ground No. 1 of revenue's appeal stands dismissed. 6. In ground No. 2, the revenue is aggrieved for deletion of disallowance of 75 per cent of the expenses claimed by the assessee. 7. We have heard the learned DR and found from the record that it was the first year of the business of the assessee, the total receipts from the above business was only at Rs. 88,489 against which total expenditure (excluding car depreciation and interest on car loan) was only Rs. 63,937. The loss at Rs. 59,771 had arisen due to car depreciation which was claimed at Rs. 60,989 and interest on car loan at Rs. 25,427. 8. By the impugned order, CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
