R G AGARWAL Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioners challenge their prosecution under Section 276-C of Income tax Act 1961.

(2.) The brief history of the case is that the petitioner No. 1, which is a firm, with petitioner Nos. 2, 3 &4 partners submitted Return of Income for the Year 1981-82 and disclosed a loss of Rs. 22,198/-. They also shown the payment of interest to firm Murlidhar Kishan gopal to the tune of Rs. 34,721/- and further disclosed that they have received loan from B.K. Lunia to the tune of Rs. 21,000/-.

(3.) The Income-tax Officer did not accept this contention. Thereafter, the petitioners filed an appeal before the Commissioner, Income-tax, who accepted the appeal. Thereafter, an appeal was filed before the Tribunal by the Department of Income-tax. The Tribunal accepted the appeal and found that loss shown as above and the loan from Shri B.K. Lunia is net correct.