9911796707
TMI Blog2010 (1) TMI 1233X X X X Extracts X X X X X X X X Extracts X X X X ..... ont-size:10.0pt; font-family:"Calibri",sans-serif; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:Mangal; mso-bidi-theme-font:minor-bidi;} Shri N.R.S. Ganesan And Shri Chandra Poojari. Appellant by : Shri S.Rama Rao Respondent by : Shri E.S. Nagendra Prasad ORDER Per N.R.S. Ganesan, Judicial Member: These appeals of the assessees are directed against two independent orders of the Commissioner of Income-tax (Appeals) III, Hyderabad, for asst. year 2003-04, both dated 15-2-2007. Since common issues arise for consideration in both these appeals, we heard the appeals together and we dispose of the same by this common order. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... borrowed amount was utilized for the purpose of earning interest income. Admittedly, the assessees have income from salary, house property and other sources. Unless and until the assessees prove that the interest was paid exclusively for earning interest income, the same cannot be allowed while computing the taxable income. In our opinion, the CIT (A) has rightly confirmed the disallowance after following the judgment of the Apex Court in the case of V.P. Gopinathan (supra). Therefore, we do not find any reason to interfere with the orders of the lower authority. Accordingly, we confirm the same. 5. The next ground of appeal is with regard to addition of ₹ 6,39,220 in the case of K.Geetha and ₹ 9,72,990 in the case of K.Narasi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the material available on record. No doubt the assessees admitted accumulated profit at the end of the relevant previous year. For the purpose of computing the deemed dividend, the AO is bound to compute the accumulated profit on the date on which the deemed dividend was paid by the company. Admittedly, the lower authorities have not computed the accumulated profit on the date of payment of money. The assessees also have not brought on record any material for computing the accumulated profit on the date of payment of the money by the company. In that factual situation, in our opinion, the accumulated profit on the date of payment of money by the company to the beneficial shareholders has to be computed. In the absence of any material to c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f identity and creditworthiness of the creditors in spite of several opportunities given by the AO. In the absence of any material to prove the identity of the creditors, their creditworthiness and the genuineness of the transaction, the lower authority has rightly confirmed the addition. 10. We have considered rival submissions on either side and also perused the material available on record. Admittedly, the assessee produced confirmation letters. The AO appears to have rejected the confirmation letters filed by the assessee on the ground that all the confirmation letters were in similar form. The AO has also found that the confirmation letters do not contain details of identity and source of income of the creditors. The assessee now clai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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