MAHARASHTRA PACKAGING Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THIS Tax Appeal u/s. 260A of the Income -tax Act, 1961 is filed against the judgment and order passed by the Income Tax Appellate Tribunal, Ahmedabad Bench in ITA No. 561/AHD/2001 dated 17.04.2002 whereby, the appeal filed by the assessee was partly allowed.

(2.) BRIEFLY stated, the assessee -firm is engaged in the activity of manufacturing corrugated boxes. This appeal is against the upholding of the capital contribution of the partner -Khimjibhai Patel of the assessee -firm of Rs. 1.70 Lacs and another partner -Bhimjibhai Patel of Rs. 2,01,000/ - totalling Rs. 3,71,000/ - as unexplained cash credit in the hands of the assessee -firm. During the year under account, partner -Bhimjibhai Patel and Khimjibhai Patel had introduced capital of Rs. 2,01,000/ - and Rs. 1,70,000/ - respectively in their capital account included in the audit report.

(3.) AGAINST the order of the A.O., appeal was preferred before the CIT(A). Vide order dated 03.01.2001, the CIT(A) partly allowed the appeal by directing the A.O. to restrict the disallowance out of telephone expenses to the extent of 50% of the residential telephone expenses and make a disallowance of Rs. 10,000/ - out of factory expenses and canteen expenses taken together. Being aggrieved by the order of CIT(A), the assessee preferred appeal before the Appellate Tribunal. Vide judgment and order dated 17.04.2002, the Appellate Tribunal partly allowed the appeal. Being dissatisfied with the same, the assessee has filed the present appeal.