9911796707
TMI Blog2009 (12) TMI 732X X X X Extracts X X X X X X X X Extracts X X X X ..... had been assigned for such treatment ignoring the fact that such reasons had been narrated in details in paragraph 4 of the assessment order. 2. Whether in the facts and circumstances of the case the learned Commissioner of Income-tax (Appeals) has erred in directing the Assessing Officer to assess the assessee's income from money lending as business income on the ground that in earlier years that said income had been assessed as business income ignoring the fact that in the immediately preceding year similar income was assessed as income from other sources and that all assessment years are separate? 3. Whether in the facts and circumstances of the case the learned Commissioner of Income-tax (Appeals) has erred in allowing miscellaneous ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to add, modify or amend the grounds of appeal. Notice of hearing was sent to the assessee, which has been duly served as per acknowledgment placed on record. However, on the fixed date of hearing none appeared on behalf of assessee, therefore, we proceed to decide the appeals ex parte qua the assessee after hearing the learned Departmental representative. Apropos ground Nos. 1 and 2 of the Departmental appeal it is the finding of the learned Commissioner of Income-tax (Appeals) that income from money lending in all preceding years, i.e., up to the assessment year 2003-04 and in the succeeding assessment years, i.e., the assessment year 2006-07 and onwards has been assessed as business income and as there is no change in the facts of the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 1,10,243 15,57,123 Against the above expenditure of Rs. 5,74,091 is claimed by the assessee: Less : Expenditure claimed : Salary to staff 4,44,800 Postage and telegrams 1,188 Printing and stationery 607 Telephone 35,431 Uniform and welfare 1,066 Bank charges 5,325 Bonus 14,400 Insurance 10,220 Car expenses 24,857 Vehicle running expenses 7,180 Foreign trip expenses 21,100 General expenses 7,010 Legal expenses 14,500 Rent, rates and taxes 11,455 Maintenance and supervision 1,095 Electricity expenses 78,912 Audit fee 5,400 Subscription 9,063 Deepawali expenses 4,021 Depreciation on assets 17,261 5,74,091 Profit 9,83,032 Net profit, i.e., the difference between the two, i.e., a sum of Rs. 9,83, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he learned Departmental representative and after considering the facts available in the order of the Commissioner of Income-tax (Appeals), we are of the opinion that the learned Commissioner of Income-tax (Appeals) has rightly held that these expenditure are allowed and we decline to interfere in such findings of the learned Commissioner of Income-tax (Appeals). Thus, ground Nos. 3 and 4 of the Departmental appeal are dismissed. Ground No. 5 of the Departmental appeal relates to interest earned by the assessee from IFCI Bonds. It is the case of the Assessing Officer that the difference between the initial value and sale proceeds of the bonds was assessable as income of the assessee. As against that it is the case of the assessee that he be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ost at which the bonds were acquired and the income arising from the bond which has already been offered to tax by the person redeeming the bond." In this view of the situation, the learned Commissioner of Income-tax (Appeals) has asked the Assessing Officer to assess the income from IFCI Bonds at Rs. 11,02,439 instead of Rs. 72,76,930 taken by the Assessing Officer and granted the relief of Rs. 61,74,491. We have heard the learned Departmental representative who relied on the order of the Assessing Officer and after going through the details found in the order of the Commissioner of Income-tax (Appeals) and after going through the contents of circular relied upon by the assessee, we are of the opinion that the learned Commissioner of Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 per share. In the circumstances the learned Commissioner of Income-tax (Appeals) after referring to the decision of the hon'ble Madras High Court in the case of CIT v. S. Balasubramaniam [1986] 159 ITR 288 has observed that rules prescribed under the Wealth-tax Rules or Schedule to the Act may provide a good guideline for finding the value of unquoted shares. The assessee has not been able to justify the extremely low sale value of the shares as declared by him. In view of this, the addition of this ground is confirmed. The learned Departmental representative relied on the order of the Assessing Officer and the Commissioner of Income-tax (Appeals). After considering the assessment order as well as the order of the Commissioner of Income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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