1980 (2) TMI 110

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....nt proceedings, the ITO noted that as on 1st April, 1971 i.e. the first day of the previous year relevant to the asst. yr. 1971-72 under appeal, the assessee had opening balance of Rs. 20,624 which was at the end of the previous year at 42,624. The ITO wanted to know the source from which the accretion to this account had resulted. The assessee stated that Rs. 12,000 came from the sale of movie equipment and the balance came as gifts of Rs. 5,000 each from Smt. Rali Devi and Hakim Kashi Ram. Thus there was accretion to the capital to the tune of Rs. 22,000 apart from the profit from the business during the year under appeal. Evidence regarding the gifts was filed before the ITO. According to the ITO, no positive evidence was produced for th....

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.... did not even meet the Inspector on that day is not without force. The position thus is that the addition of Rs. 12,000 has to be considered on merits. For this purpose, I would restore the, appeal to the file of the AAC with a direction that the addition of Rs. 12,000 irrelevant. Has to be considered on merits, after giving a due opportunity to the assessee. The agreement, if any made by the assessee for the asst. yr. 1973-74 is relevant so far as these proceedings are concerned". Thus the appeal went back to the AAC on this issue. 3. The present order in appeal before us is in consequence of the above order of the Tribunal. In this order, the AAC has accepted the contentions of the assessee that the assessee had purchased one Movie ....