INCOME TAX ACT, 1961

--Income from undisclosed sources--Addition under section 69 Share application money--Assessing officer made additions on account of unexplained share capital, unexplained share application money, unexplained sundry creditors, difference in the cost of construction being unexplained investment, FDRs purchased by the company, loading and unloading and salary expenses. Held: Was not justified as assessee held produced relevant evidence before establishing that all' the persons, who had deposited the share application, were not fictitious persons. Most of them were identifiable ; they made the payment by cheques and most of them were assessed to income-tax and Tribunal had not accepted the argument of the department that the explanation furnished by the assessee for the addition under section 69 on account of the unexplained investment was not to the satisfaction of the assessing officer.

Income Tax Act, 1961 Section 69

INCOME TAX ACT, 1961

--Interest under section 215/217--Charging of interest by application of mind--If any provision of law was mandatory and provides for charging of tax or interest, such charge by the assessing officer should be specific and clear and the assessee must be made to know that the assessing officer has applied his mind and had ordered charging of interest. The mandatory nature of charging of interest and the actual charging of interest by application of mind and the mention of the proviso of law under which such interest was charged were two different things.'

Income Tax Act, 1961 Section 69

In the Allahabad High Court

Sunil Ambwani and Aditva Nath Mittal JJ.

CIT v. Misra Preservers (P.) Ltd.

Income Tax Appeal Defective No. 158 of 2001

A.Y. 1988-89

26 July, 2012

Appellant by : A. Kumar, B. J. Agrawal, D. Awasthi, G. Krishna, R. K, Upadhyay & Shambhu Chopra

Respondent by : A Bansal, S. Pathak & S. K. Garg