9911796707
TMI Blog2012 (11) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... asons recorded for reopening the assessment does not stand legal security. (2) Whether on the facts and circumstances of the case the Tribunal is legally justified in deleting the following additions. (i) Rs. 1, 55, 000/- on account of unexplained investment in the hundies holding that there was no escapement of income in respect of hundies. (ii) Rs. 49, 925/- as profit earned by Km. Rashmi and Master Annu Bansal holding that there was no justification for treating the income of the assessee. (iii) Rs. 40, 000/- on account of cash deposit in the named Ramesh Chandra Agrawal. (3) Whether on the facts and in the circumstances of the case the Tribunal is legally correct in holding that interest charges U/s 139 (8) and 215/217 is not susta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t except through their guardian, did not earn any income. Their income was that of the assessee. The papers seized during the course of search were only a part of the scheme in which the assessee distributed his income. The AO thus made addition of Rs. 49, 925/- in the income of the assessee. For unexplained investment in hundies, the AO observed that during the course of search, certain hundies were recovered, on which he made addition of Rs. 1, 55, 000/- in the income of the assessee. He also found that there was cash credit in the name of Shri Ramesh Chand in the books of the assessee for which no confirmation was filed. Since the identity and financial status of the creditors were not proved, the amount was treated as undisclosed income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent order would be December, 1987 to 31st March, 1989 (transitional period). The assessee had shown the entire hundies amounting to Rs. 1, 55, 000/- in the return filed for the assessment year 1989-90. These hundies could not be assessed in the assessment year 1988-89, and even otherwise these were disclosed by the assessee in the relevant year 1989-90, hence the addition of Rs. 1, 55, 000/- was deleted. Regarding addition of Rs. 40,000/- made on account of cash deposit in the name of Shri Ramesh Chand Agarwal, the Tribunal held that the assessee had submitted confirmation letter from the creditor, which was duly filed before the AO. The creditor was assessed to tax and his Permanent Account Numbers were given in the confirmatory letter. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he capital account and profit and loss account. Their father could have carried out the business on their behalf and thus the Tribunal was right in holding that their income could not be clubbed with the income of the assessee. Section 64 (iii) was omitted by the Finance Act, 1992 with effect from 1.4.1993 and Section 64 (1A) providing for clubbing of all income of the minor child to be included in the income of the individual was inserted by the same Act with effect from 1.4.1993. In the present case, we are concerned with the assessment year 1989-90 to which Section 64 (1A) will not apply. 9. So far as the hundies are concerned, the Tribunal has rightly recorded the findings that the assessee had shown the entire hundies amounted to Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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