1996 (3) TMI 48

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....he applicant (Commissioner of Income-tax, Bhopal) has filed this application under section 256(2) of the Income-tax Act, 1961 (for short the Act), seeking a direction to the Tribunal to state the case and to refer the proposed question of law after rejection of the application registered as R. A. No. 444/Ind. of 1991 for the assessment year 1985-86 on January 10, 1992, arising out of the order dat....

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....tors. On appeal, the Deputy Commissioner of Income-tax (Appeals) set aside the order of assessment on the limited issue of verification of cash credits amounting to Rs. 65,000 relating to three creditors and deleted the addition of Rs. 20,000 relating to the fourth creditor, Smt. Urmila Agrawal, on the ground that she was assessed to tax wherein the aforesaid amount was shown by her as having been....

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....issed the appeal of the Department and held as under : "He found that in the balance-sheet the loan of Rs. 20,000 given to the assessee-trust was mentioned. Under these circumstances, the Department should not have any grievance as to violation of rule 46A. The Income-tax Officer could have taken pains to examine the income-tax file of Smt. Urmila Agrawal but instead he chose the easier course ....