JT. COMMISSIONER OF INCOME TAX Vs. BUDH KISHORE

JUDGEMENT

(1.) THE department is in appeal against the order of Commissioner (Appeals), Rohtak, in Appeal No. 129/BWN/1997 -98, dated 3 -9 -1998.

(2.) THE assessed is conducting business in the name and style of M/s. Ram Swaroop Dass Radha Kishan at Bhiwani. The concern acts as a commission agent and also retails washing soaps and oil, etc. In addition, the assessed has shown income from investment made in shares. The assessed had taken loans/deposits from various persons at interest rates varying between 12 per cent to 15 per cent had also advanced amounts at 12 per cent to 18 per cent interest to various family members and others which included employees of the assessed as well as sister - concerns. A search was conducted on 20 -10 -1994, at the business and residential premises of this group. During the year, the assessed had been making investments in share applications of various new issues and for this purposes he had obtained FDRs from Bank s, source thereto explained as being out of withdrawals from M/s. Ram Swaroop Dass Radha Kishan and cash in hand. The assessed had opened stock invest account with the bank s and stock invest certificates were being used while applying for the shares in his name or when required by other family members or friends or known persons. It has been the assessed's stand that stock invests certificates were given to such persons for purpose of applying for shares and on allotment, the payments used to be made by those persons. To generate funds for investment, loans were taken by the assessed and these were credited in the books of M/s. Ram Swaroop Dass Radha Kishan. Confirmations of the loans taken and loans advanced along with interest thereon were filed during the course of assessment proceedings.

(3.) THE first ground of appeal is against the action of Commissioner (Appeals) in deleting the addition of Rs. 2,36,274 made on account of amount receivable from M/s. Ashok and Co. against sale of shares.