1981 (11) TMI 106

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.... should not be applied to the assessee's case. IT was the assessee's case that there were accumulated losses to the extent of Rs. 74,658. The book profits for the year was Rs. 93,488 before setting off of the past losses. The net credit balance was Rs. 18,830 while the tax due for the year was Rs. 39,942 for which no provision had been made in the accounts. It was therefore claimed that there were no available commercial profits for distribution. The ITO however, was not prepared to look into the book profits. On the basis of the assessed profits he had taken the view that s. 23A was applicable and he applied the same. The AAC accepted the assessee's plea and allowed the appeal. This Tribunal, however restored the order of the ITO by its or....

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....000 8,000 186 23,186 1950 - 51 ... 8,948 5,583 14,531 1951 - 52 ... 20,439 4,325 24,764 1952 - 53 20,000 1,875 7,348 29,223 1953 - 54 ... 3,222 1,950 5,172 1954 - 55 562 16,600 2,412 19,574 1955 - 56 ... 1,000 14,009 15,009 1956 - 57 ... ... ... ... 1957 - 58 ... ... 83 83 We find that on facts that none of the addition was based on any positive facts which would suggest diversion of the assessee's income or secreting of the assessee's income by way of inflation of expenses. Additions have been made because some expenditure was found to be prima facie higher than what was considered reasonable by the ITR or because the accounted collections were less than the expected collections based upon the ca....

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.... that money is available to the assessee for distribution merely because some additions have made in the assessments. Much reliance was placed on the decision of the Supreme Court in the case of Gobald Motor Service (P). Ltd. vs. CIT (1966) 60 ITR 471 (SC) where unaccounted receipts were held to be available profits for purposes of application of s. 23A. But the facts in that case were entirely different from what has been found by us. The Supreme Court had found that there was a deliberate omission by way of inflation of expenses and keeping away of luggage collection to the extent of Rs. 15,000 outside the accounts. In fact there was a specific finding that the concealed profits amounted to Rs. 40,000. The facts in the assessee's case are....