1979 (7) TMI 149

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.... (to modify the ITO s addition of interest receipt of Rs. 54,209 to Rs. 36,000) should be allowed. 2. The stated facts are that after making the assessment the ITO issued a notice under s. 154 to the assessee on 15th April, 1977 proposing to rectify the assessee on the calculation of depreciation and profit on sale of typewriter under s. 41(2) The assessee in its reply dt.18th April, 1977 and in ....

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....54 to enhance the profit under s. 41(2) On the assessee s appeal the AAC allowed the assessee s contention in the following words. It is clear from the order of the ITO that the addition of Rs. 54,209 has not been reviewed in the context of the reasoning given in the AAC s order which leads to the conclusion that there is a mistake in the determination of the figure of the interest added at Rs. 5....

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....9,60,925 had been taken away by the family members, such as Smt. Chandrakala Ruia, Sri Sashikant Ruia. and Sri Ravikant Ruia, on which the interest received by the assessee was nil or negligible compared to the interest payments Taking the average utilisation and calculation the rate of interest at 12 per cent the ITO made the addition of Rs. 54,209 on account of under charged interest. The AAC co....