TaxTMI 
TaxTMI 
1980 (11) TMI 78
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....d that Chandra Kagaj Udyog had not been held a genuine concern and the assessment in that case has been made as a protective measure and, therefore, also its incomes should be included in the income of the assessee firm. The inclusion was upheld by the AAC on the ground that its income was included in the income of the assessee in the earlier years and it had also been confirmed by the Tribunal. 3. The above findings have been challenged by the counsel for the assessee before us. We have heard the parties. It will be necessary to trace out the history of this issue in this order. The ITO had made an assessment on Chandra Kagaj Udyog for the asst. yr. 1972-73. The assessment was made by him as a protective measure in the status of an unregi....
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....he ITO to include its income in the assessment of the assessee. It was similarly submitted before us that even the AAC had confirmed the finding of the ITO on that wrong assumption. It was also submitted before us that Chandra Kagaj Udyog having been treated as a separate concern by the ITO both for the purposes of IT as well as for levying penalties under s. 273(b)of the Act, it would be wrong to treat it also as a branch of the assessee firm. 5. In our opinion, there is force in the submissions of the ld. counsel for the assessee that there is no finding by any of the authorities including the Tribunal that Chandra Kagaj Udyog was either a branch or a benami concern of the assessee firm. However, that question had to be decided in view o....
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....e ITO to ascertain the correct municipal valuation and estimate the income from property on that basis alone. 7. The next contention in the asst. yr. 1973-74 relate to disallowance of 3/4th of the House tax amounting to Rs. 450. This question is also linked with the portion of the building occupied by the partner. After the ITO ascertains the portion correctly occupied by him and its value as directed above, he will reconsider the amount which could be disallowed from house-tax. This matter is also, therefore, remitted back to him for reconsideration. 8. The next contention in the asst. yr. 1973-74 relates to the various disallowances out of travelling expenses. The ITO has disallowed Rs. 1,500 relating to car, Rs. 112 as entertainment ex....
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....tion on the building will depend on the finding of the ITO regarding its use and extent of that use by its partner. This should, therefore, be reconsidered by him. 11. The disallowance of Rs. 1537 claimed as bad debts in the above year has not pressed before us and is, therefore, confirmed. 12. The disallowance of Rs. 1,000 in the above year should be granted the benefit of s. 80-G by the ITO as the conditions of that section seemed to have been satisfied even according to his own observations in the assessment order. 13. The last contention in the above year relates to levy of penal interest. The Allahabad High Court has held that it is not appealable. This case comes from the jurisdiction of the above High Court. We, therefore, confirm....