1982 (10) TMI 63

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.... 2. The only ground taken in the appeal is that the Commissioner (A) erred in deleting an addition of Rs. 41,887 which had been made by the ITO. 3. The assessee is a registered firm. It had taken loans of Rs. 20,000 each from two lenders. namely, Shri N.R. Kenia and ;Shri Dharshi Lakhamshi Dedhia. The lenders subsequently gave confirmation that the transactions were havala entries only. The a....

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....hem. Thereafter the assessee stated that without prejudice to its contention that the loans were genuine, it would submit to the addition of the amounts to the income provided no penalty is levied under s. 271(1)(c). On the basis of this letter, the ITO stated that the assessee had shown willingness for the addition of the amounts and he accordingly added the amount of Rs. 40,000 and also the inte....

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....t was contended by the ld. departmental representative that the CIT(A) has erred in holding that the assessee had discharged the onus and that the assessment made by the ITO without further investigation cannot be sustained. The ld. departmental representative, however, fairly conceded that it was not proper on the part of the ITO to have acted upon the willingness of the assessee to make the addi....

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.... Oct., 1978, the assessee had contended at length with reference to the rulings of the High Court on the subject that the geniuses of the loans have to be accepted. It was thereafter that the assessee, for the sake of purchasing peace and early disposal of the matter, offered to accept the additions provided no penalty will be imposed on him. In our view, the ITO was in error in spelling out from ....