1981 (4) TMI 175

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....Devi Rs. 4,367 (4) Shree Ravindra Textiles Rs. 1,612 . Total Rs. 10,176 The details of payments made during the asst. yr. 1975-76 are as follows: (1) Shri Motilal Agarwal Rs. 5,918 (2) Smt. Bhagirathi Devi Rs. 7,067 . Total Rs. 12,985 The ITO during the asst. yr. 1974-75 found that the assessee was constructing a house as disclosed the investment of Rs. 94,639. He, therefore, came to the conclusion that the loans taken by the assessee were not used for her business, but the loans were utilised for the construction and, accordingly, he disallowed the interest. 3. The assessee came in appeal before the AAC and the AAC accepted the plea that the loans raised by the assessee were utilised....

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....f the assessee for asst. yrs. 1973-74, 1974-75 and 1975-76 and the order of the Tribunal in ITA No. 1424 (Pat) of 1977-78 dt. 17th Dec., 1980 on the basis of which he supported the order of the AAC on this issue and urged that the AAC after examining the facts had come to the conclusion that the assessee invested in building construction out of her capital account and, therefore the loans were utilised for the purposes of the business of the assessee. Hence the deletion of interest should be confirmed. 8. The interests of Rs. 10,176 and Rs. 12,985 had been disallowed by the ITO on the ground that the loans on which these interests has been paid were not utilised for the purposes of the business of the assessee. The additions made by the ....

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....ost during the assessment year 1974-75 was found to be Rs. 1,55,580. The assessee, on the basis of the visit of the registered valuer on 22nd Aug., 1975, submitted the value of the building at Rs. 1,69,400. The ITO, therefore, during the asst. yr. 1974-75 added Rs. 13,420 which was ultimately reduced to Rs. 5,000 on appeal. However, the departmental valuer valued the house at Rs. 1,88,100 who visited the house on 30th March, 1977. The ITO accepting the value of the departmental valuer at Rs.1,88,100 as correct, deducted the value of the registered valuer at Rs. 1,69,100 and, accordingly, took Rs. 19,000 as income from unexplained sources. 10. The assessee came in appeal before the AAC and contended that the house was constructed during t....