Law:

Section:

Section 69, read with section 69C, of the Income-tax Act, 1961 - Unexplained investments - Assessment years 1967-68 to 1971-72 - ITO made agreed additions, inter alia, for low household expenses to assessee's income - Whether past intangible additions made in case of firm, of which assessee was a partner, and allocated to assessee's share could be taken into account in considering unexplained investments of assessee and these would also be available for set off purposes in respect of agreed additions for low household expenses made in relevant assessment years Held, yes FACTS The ITO made agreed additions, inter alia, on account of low household expenses to the assessee's income. However, the assessee claimed before the ITO that the past intangible additions made in the case of the firm of which he was a partner and allocated to his share should be taken into account in considering the unexplained investments. The assessee also claimed that these would also be available to him for set off in respect of the agreed additions for low household expenses made in the relevant assessment years. The ITO disallowed the assessee's claim. On appeal, the AAC upheld the assessee's claim. On further appeal upholding the assessee's claim the Tribunal sent back the matter to the AAC to examine the question of intangible addition afresh keeping in view the rival contentions of the parties. On reference: HELD In view of the decisions in CIT v. Ram Sanehi Gian Chand [1972] 86 ITR 724 and Anantharam Veerasinghaiah & Co. v. CIT [1980]123 ITR 457 the Tribunal was right in holding that the past intangible additions made in the case of the firm of which the assessee was a partner and allocated to the assessee's share could be taken into account in considering the unexplained investments of the assessee and these would also be available for set off purposes in respect of the agreed additions for low household expenses made in the assessee's income in the year under consideration and in remitting the matter to the AAC. CASES REFERRED TO CIT v. Ram Sanehi Gian Chand [1972] 86 ITR 724 (Punj. & Har.) and Anantharam Veerasinghaiah & Co. v. CIT [1980] 123 ITR 457(SC). A.K. Mital…

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