TMI Blog2012 (12) TMI 745X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee has not placed any evidence to substantiate his claim as shown in the trading and P & L account in these circumstances, thus disallowance of business loss as made by the AO and confirmed by the CIT (A) does not call for any interference - against assessee. Disallowance of bank interest on O/D - Held that:- Assessee has converted the FDs into MIS with West Bengal State Co-operative Bank Ltd. As the assessee has not been able to substantiate the use of the O/D for business, finding of the AO in disallowing the same and as confirmed by CIT (Appeals) is on right footing and does not call for any interference- against assessee. Legal expenses – Disallowance as not shown in the original return - Held that:- A perusal at the assessee’s paper book copy of the bill shows that a bill from the advocate has been placed by the assessee detailing the expenditure and that has not been examined by the Assessing Officer. In the circumstances issue is restored the file of AO after granting adequate opportunity of hearing to the assessee to substantiate his claim - in favour of assessee for substantial purposes. Payment made to Land Broker - Held that:- Assessing Officer has not dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance of legal expenses of Rs. 12,800/- on the grounds which are not correct 5. For that the appellant craves leave to adduce, modify and/or alter the grounds at or before hearing. ITA No.1816/Kol/2010 AY 2001-02 9 [by the assessee] 5. In this assessee s appeal the assessee has raised following grounds of appeal:- 1. For that the Ld. Commissioner of Income Tax (A)-XXXII/Kolkata has erred in law as well as on facts of the case in confirming the disallowance of business loss of Rs. 15,971/- on account of damage of goods which are not correct. 2. For that the Ld. Commissioner of Income Tax (A)-XXXII/Kolkata has erred in law as well as on facts of the case in confirming the disallowance of Interest of Rs.36,151/- on Bank O.D. on the grounds which are not correct. 3. For that the Ld. Commissioner of Income Tax (A)-XXXII/Kolkata has erred in law as well as on facts of the case in confirming the sum of Rs. 10,500/- out of total sum of Rs.14,000/- on account of legal expenses on the grounds which are not correct. 4. For that the Ld. Commissioner of Income Tax (A)-XXXII/Kolkata has erred in law as well as on facts of the case in confirming the additions of Rs.22,362/- bei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sidered the rival submissions. A perusal of the assessment order in respect of said issues shows that the assessee has not produced any evidence in respect of capital accumulated during 1-4-90 to 31-3-96. It is further noticed that except in respect of FDs with M/s. Duncan Industries and cash in hand, all other investments have been substantiated and also accepted by the Assessing Officer. The assessee brought evidence to show that FDs with M/s.Duncan Industries Limited were made before 1-4-09 and consequently, it is not liable to be treated an unexplained expenditure/investment and the addition of Rs.4,05,000/- on a/c of FDs with M/s. Duncan Industries Ltd stands deleted for the AY 2000-01 under appeal. This issue of assessee s appeal is allowed. 10. In respect of cash in hand of Rs.3,79,685.89/- the learned AR for the assessee placed before us a copy of the will of assessee s mother, where cash of Rs.3,03,000/- has been referred to. It is noticed that the will is dated 20-01-1990 and cash of Rs.3,03,000/- is being referred to. However, no evidence whatsoever has been placed to substantiate the claim. Thus holding of cash of Rs.3,03,000/- from the date of creation of the will ti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on made by the Assessing Officer by disallowing the business loss. Even, before us the assessee has not placed any evidence to substantiate his claim as shown in the trading and P L account. In the circumstances, we are of the view that the disallowance of business loss as made by the Assessing Officer and confirmed by the learned Commissioner of Income-tax (Appeals) is on the right footing and does not call for any interference. 14. In respect of bank interest on O/D, a perusal of the balance sheet as on 31-03-2000 shows that the assessee has shown an O/D account of Rs.5,51,468.14. However, a perusal of the Trading and P L account shows that the total turnover (sales) of assessee of Rs.45,768/- and closing stock of Rs.378/-. A perusal of balance sheet shows that the break up of the current asset is as MIS representing FD with West Bengal State Co-operative Bank Ltd, income from which has been offered to tax under the head income from other sources . A perusal of the date of deposit in respect of MIS shows that the same are Sept 99/Nov 99. The other investments being stock totalling to Rs.378/-. Further, a perusal of the immediately preceding year s capital account shows tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ranting adequate opportunity of hearing to substantiate his claim. In the circumstances, the appeal of the assessee i.e ITA No.1815/Kol/10 for the assessment year 2000-01 is partly allowed for statistical purpose. ITA No.1816/Kol/10 A.Y 2001-02 [by the assessee] 18. In regard to ground nos. 1 2, it was fairly agreed by both the sides that the issue was identical to ground nos. 2 3 in ITA No.1815/Kol/10. It was fairly agreed by both the parties the findings given in ground nos. 2 3 in ITA No.1815/Kol/10 for the assessment year 2000- 01 would apply to these grounds as raised in ITA No.1816/Kol/10 for the assessment year 2001-02. In ITA No. 1815/Kol/10 in ground nos. 2 3, we have confirmed the order of the learned Commissioner of Income-tax (Appeals). In the circumstances, following the identical findings as given in ITA No.1815/Kol/10, the ground nos. 1 2 of ITA No.1816/Kol/10, stand dismissed. The order of the learned Commissioner of Income-tax (Appeals) stands confirmed on this issue. 19. In regard to ground no.3, it was fairly agreed by both the sides that the issue is identical to ground nos. 4 5 in ITA No.1815/Kol/10. It was fairly agreed that the same fin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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