TMI Blog1984 (5) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... nate remedy not availed of. On this short ground, the petitioner could have been non-suited. But, since the petition in 1977 was admitted ex parte, it would not be proper now to dismiss it on that score despite the objection of the respondents. The facts giving rise to this petition are simple and straight. The petitioner was a businessman at Ludhiana under the name and style of " Messrs. Raghbir Singh Vinod Kumar, Ghas Mandi, Ludhiana ". For the assessment year 1971-72, he filed his income-tax return. The ITO made additions to the tune of Rs. 37,465. The said sum included a sum Rs. 10,000 which the petitioner was found to have loaned to M/s. Vasudhara Textile Mills, Ludhiana, but without having disclosed the source of that sum of money. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f actual lending. Surprisingly, in his account books, he even made an entry in that regard on April 25, 1970, and so did M/s. Vasudhara Textile Mills indicating the taking of loan. Furthermore, as was the finding recorded by the authorities, the said sum was shown to have been returned to the petitioner on June 30, 1970, within a span of nearly two months. Still the petitioner claims that he persisted before the Income-tax Appellate Tribunal that when M/s. Vasudhara Textile Mills had claimed this money to be theirs and, in other words, benami of the petitioner, then on that score the Tribunal should have held the said sum to be benami in his hands and of name-lending not obligating him to disclose the source of income of that sum. The Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erred by the ITO to the IAC. There are no two opinions that such an order of the ITO is not appealable by the Revenue before the AAC. Obviously, the foundational order is that of the ITO. It is the axis thus on which the jurisdiction of the IAC revolves. By no means can the order of the AAC passed on appeal of the assessee be supplanted in the aforesaid provision so as to oust the jurisdiction of the IAC if, per chance, the appellate court has decreased the quantum of additions. Thus, there is no merit in the first point. The second contention raised is that the matter has not been approached from a proper angle. There is, allegedly, violation of the rule laid down by the Supreme Court in CIT v. Anwar Ali [1970] 76 ITR 696. Reliance is al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Vasudhara Textile Mills, was genuine and of money lending. The mere fact that M/s. Vasudhara Textile Mills, by a voluntary disclosure described such transaction as benami, so far as it related to the petitioner, was of no avail to the petitioner. No order of any income-tax authority, passed thereon was pressed into service to show any conflicting decision. The voluntary disclosure of M/s. Vasudhara Textile Mills could not, in the circumstances, be treated as the gospel truth. In any case, it was a pure question of inference to be drawn from the circumstances which was within the domain of the authorities. No fault in that regard can be found with the view taken by the Appellate Tribunal. Mr. Nehra was emphatic that the affidavit had to be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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