T.P. INDRAKUMAR Vs. ITO

JUDGEMENT

(1.) APPEAL by an assessee, an individual, in respect of the assessment year 1998 -99, who though had initially filed return claiming a loss of Rs. 1,17,480, on scrutiny by the assessing officer in respect of the particulars of the returns and later on the assessee volunteered to offer an additional income of Rs. 10 lakhs, had been assessed and on such premise had been asked to bear a tax liability of Rs. 2,23,856 on a net income of Rs. 8,29,520 with the addition of a sum of Rs. 13,428 as interest under Section 234A of the Income Tax Act, 1961 (for short, the Act) and a further sum of Rs. 92,877 towards interest under Section 234B, totally a sum of Rs. 3,30,161 apart from the prospects of facing liability under Section 271(1)(c) of the Act, and being unsuccessful in getting rid of this assessment order before the first appellate authority - -the Commissioner (Appeals) and so also before the Tribunal.

(2.) THIS Court while admitting the appeal had noticed the following questions of law for examination, as indicated in the memorandum of appeal:

(3.) BRIEF facts leading to this appeal are that : The assessee who was carrying on business of running a rice mill and who, it appears, had started the business afresh, had filed his return of income for the assessment year in question and had claimed a loss of Rs. 1,70,480, mainly attributable to the deduction due to depreciation on the investment made in the rice mill.