9911796707
TMI Blog2015 (8) TMI 121X X X X Extracts X X X X X X X X Extracts X X X X ..... dited to his loan account which is not reflected the firms accounts. Holding that HUF is not a 'relative' under section 56(2), A.O. treated the amount of Rs. 2,50,000 as income of the assessee. Likewise, an amount of Rs. 90,000 was also treated as income on the reason that the same was not reflected in the ledger account copy of the firm M/s. Mahalaxmi Modern Rice Mill. Aggrieved, assessee preferred an appeal before the Ld. CIT(A) and made detailed submissions. However, Ld. CIT(A) without extracting the submissions or considering them, simply by extracting the assessment order of the A.O., dismissed the appeal stating that he do not find any reason to interfere with the order of the Assessing Officer. 3. Ld. Counsel for the assessee, at th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the HUF be exempt from taxation and would, if a gift collectively given by the 'group of relatives' from the HUF not exempt from taxation. To better appreciate and understand the situation, it would be appropriate to illustrate an example, thus-an employee amongst the staff members of an office retires and in token of their affection and affinity towards him, the secretary of the staff club on behalf of the members of the club presents the retiring employee with a gift; could that gift presented by the secretary of the staff club on behalf of the staff club be termed as a gift from the secretary of the staff club alone and not from all the members of the club, as such ? In our opinion answer to this quoted example would be that the gift pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le, the phrase "a lot". Here, the phrase "a lot" remains as such, i.e. plural, in all circumstances and situations, where in the case of "one of the friends" or "one of the relatives", the phrase remains singular only as the phrase states so that one amongst the relatives and at no stretch of imagination it could mean as plural whereas in the phrase "a lot" the words "a" and "lot" are inseparable and if split apart both give distinctive numbers, i.e. "a" singular and "lot" plural and whereas when read together, it can only read as plural in number unlike in the case of "one of the relatives" where "one" is always singular in number whereas "relatives" is always plural in number, but when read together it could read as singular in number. Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment of Rs. 90,000 was made by the above firm on behalf of the assessee towards the repayment of housing loan. This fact was also accepted by the A.O. However, he noted that the ledger extract of M/s. Mahalaxmi Modern Rice Mill does not have any debit to his capital account. On that reason the payments made by the firm were treated as gift made to the assessee. Accordingly, he brought amount of Rs. 90,000 to tax. 6. As briefly stated above, Ld. CIT(A) without even considering assessee's submissions confirmed the addition and dismissed the ground. It was submitted by the Ld. Counsel for the assessee that an amount of Rs. 90,000 was directly transferred from the firm account to the bank account and this transaction was clearly reflected ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
