1977 (4) TMI 73

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....as contended before the ITO that Shri Shanmugham and his two brothers sold a house property and a sum of Rs. 8,000 was received by Shri Shanmugham towards his share, out of which a sum of Rs. 6,000 was withdrawn by Shanmugham on 3rd April, 1963 and advanced as a loan to his brother and when it was repaid with interest, that amount together with Rs. 2,000 retained by Shri Shanmugham from the sale p....

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....of Rs. 10,000 found in the name of Shri Shanmugham has not been satisfactorily explained and the fact that no interest was received by Shri Shanmugham on the amount deposited with the appellant is a clear indication to show that the credit in the name of Shri Shanmugham is not true and genuine. 4. On 14th Dec., 1962, a house property was sold by Shri Shanmugham and his two brothers Shri Saravanan....

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....brother and when it was repaid with interest, Shri Shanmugham along with other amounts in his possession, deposited the sum of Rs. 10,000 on 21st Dec., 1971. Shri Shanmugham was examined by the ITO. He has admitted the fact of advancing the loan of Rs. 10,000 to the appellant on 21st Dec., 1971. From the sum of Rs. 8,000, received towards his share of the sale proceeds of the house property, Shri ....

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....depositing Rs. 10,000 with the appellant firm cannot be lightly brushed aside as not worthy of credence. The learned departmental representative contended that no interest has been received by Shri Shanmugham on the deposit made with the appellant firm. From the extracts of accounts, it is seen that a sum of Rs. 1,200 was credited towards interest in Shri Shanmugham's account for asst. yr. 1975-76....