2004 (12) TMI 70

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....questions of law under section 256(1) of the Income-tax Act, 1961, hereinafter referred to as "the Act", for opinion to this court: "1. Whether, on the facts and circumstances of the case, the Income-tax Appellate Tribunal was justified in upholding the order passed by the Commissioner of Income-tax under section 263 of the Income-tax Act, 1961, dated March 16, 1985, treating the Income-tax Off....

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..... 80,000 and Rs. 1,75,000, respectively, by crediting a sum of Rs. 2,55,000 to the account of M/s. M.M. Enterprises, a sister concern of the applicant firm, whose partners are close relatives of Shri Kashi Nath and Shri Krishna Gopal. Acting on the basis of the said report of the internal audit party the Commissioner of Income-tax examined the records and after coming to the conclusion that the as....

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....er entries made in the applicant's books of account on March 22, 1980, the capital account of M/s. Kashi Nath and Krishna Gopal were debited by Rs. 80,000 and Rs. 1,75,000, respectively, and the said amount was credited to M/s. M.M. Enterprises, a sister concern of the applicant, in which the partners are the close relatives of the aforementioned two creditors. There was neither inflow nor outflow....