1984 (4) TMI 119

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....69D of the IT Act. The proceedings relate to asst. yr. 1979-80 and the assessee's accounts had entries of the following loans: (1) Shri Bhairam Balaji Rs. 10,000 . Interest " 927 (2) Shri Narendrakumar Motilal " 4,000 . Interest " 125 (3) Shri Rajkumaribai " 29,000 . Interest " 1,236 The ITO treated these amounts as borrowe....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... had no application to the facts of the case although the ITO as well as the AAC made some laboured attempt by saying that hundies are drawn only in big cities. Sec. 69D was thus not applicable to the facts of the case. Realising this, the assessee moved an application under s. 154 before the ITO and the ITO, by an order dt. 30th Dec., 1980, rectified the mistake. It was conceded in that order tha....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... on a hundi and the transaction was not carried through an account payee cheque was sufficient to tax the amount without consideration of any explanation of the assessee under s. 68 the amount can be taxed only if the assessee fails to satisfy the ITO. The ITO did not proceed on the lines of s. 68 and did not consider the explanation offered by the assessee about the nature and source of the afore....