ROHINI DAIRY FARM Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE assessee--Rohini Dairy Farm--is an unregistered firm. During the assessment proceedings relating to the assessment year 1984-85, the assessee claimed that it had taken loans for the purpose of development of land and repaid the same with interest, after the sale of the land. Loans were taken from seven named persons, totalling to a sum of Rs. 42,000.

(2.) THE Assessing Officer disbelieved the version of the assessee about the loans and the capacity of the loanees. Hence, the amount was computed as the assessee's income and penalty proceedings were initiated.

(3.) THE assessee took up the matter in appeal before the Income-tax Appellate Tribunal, Madras Bench "B", Madras (for short "the Tribunal").