2018 (1) TMI 546

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....as against the order of the Tribunal dated 11.12.2008 and 21.01.2010 passed by the Accountant Members of the Tribunal. The appeal has been admitted on the following questions of law:- i. Whether upon the facts and circumstances of the case, the Hon'ble Tribunal was justified that the order of the Commissioner of Income Tax, Aligarh was erroneous and prejudicial to the interest of revenue partly? ii. Whether upon the facts and circumstances of the case the Tribunal by its majority judgment, was justified in holding that no due enquiry was completed by the A.O. while allowing salary and interest to the partners ignoring the fact all the three conditions given in the amended Section 184 and 185 were met and the firm had t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....O under Section 36(i)(iii) read with Section 40(b) of the Act and the Tribunal vide its majority judgment was justified in holding otherwise? The facts of the case are that the appellant's firm was doing the business of sale and purchase of Bajaj two Wheelers, Five Wheelers/Motorcycle. They filed a return for the assessment year 2001-02 declaring an income of Rs. 52,720/-. Subsequently, the case was selected for deeper scrutiny and notice under Section 143(2) (II) of the Act were issued to the appellant. Certain queries were raised by the Assessing Officer with regard to the source of investment in the capital account of the partners, which was processed under Section 143(3) of the Act on 29.08.2003 on an income of Rs. 91,210/- in th....