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- 2- (4) That learned ACIT erred in not issuing a single show cause notice before making additions of Rs. 2,47,940/- in A.Y. 92-93 & Rs. 19,36,095/- in A.Y. 93-94 w.r.t. alleged income tax refund money receipts belonging to Govt. of India and thereby further erred in raising demands of Rs. 2,37,368/- in A.Y. 92-93 & Rs. 13,21,127/- in Α.Y. 93-94.

(5) That learned ACIT erred in not supplying evidence to prove alleged charges of claims / receipts / utilization / repayment of such alleged income tax refund money receipts, though directed to supply by Hon'ble ITAT.

VII (21) That learned ACIT ought to have treated alleged income tax refund money recovered, as deductible expenditure, from income assessed, since liability to pay ITA Nos. 3217 & 3218/Ahd/2015 Shri Mukesh Rasklal Shah Vs. ACIT Asst. Year :1992-93 & 1993-94

- 4- such alleged refund money to Govt. of India accrues or arose, on the date of receipts of such alleged refund money viz. A.Y. 94-95 being year of actual recovery is totally irrelevant for this purpose and hence assessee is entitled to such deductions in A.Y. 92-93/93-94 as per ACIT's findings resulting into total income determinable as Rs. Nil in both the year/s.

• that such additions w.r.t. alleged income tax refund money receipts in A.O. dt. 23-3-95 for A.Y. 91-92 have been deleted in A.Y. 91-92 vide Appellate Order dt. 23-11-95, which has been accepted by Learned CIT Guj. III by not preferring second appeal before Hon'ble ITAT and that there is no change in factual and legal position as to ownership of such alleged income tax refund money receipts by Govt. of India only and in any case not belonging to assessee for A.Y. 92-93 & 93-94. Even conviction by Hon'ble Supreme Court of India w.r.t. such alleged charges will not charge this Govt's ownership concept of such alleged income tax refund money receipts of Rs. 21.98 lakhs which has been recovered fully. Revenue has to execute Income Tax Law only as permissible therein.

ITA Nos. 3217 & 3218/Ahd/2015 Shri Mukesh Rasklal Shah Vs. ACIT Asst. Year :1992-93 & 1993-94

- 11- 8.2. With regard to the argument of the assessee that income tax refund money has already been recovered, as deductible expenditure, from income assessed, since liability to pay such alleged refund money to Govt. of India accrues or arose, on the date of receipts of such alleged refund money, Ld. DR argued that A.Y. 1894-95 being year of actual year of recovery, assessee is not entitled to such deductions in A.Y. 92-93 / 93-94 . Ld. CIT (DR) Shri Karun Kant Ojha vehemently argued that, the receipts in the relevant assessment years had arisen out of encashment of the refund obtained in the names of several persons from the Income-tax Department. Income was earned in assessment year 1991- 92, 1992-93 and 1993-94 and was invested by the assessee in shares in the name of HUF. In assessment year 1994-95 and 1995-96, the recoveries have been made out of investments made by the assessee in the name of the HUF and its members. Therefore, the deduction of an expenditure, if any, has to be considered from the income of assessment years 1994-95 and 1995-96 only. The assessee is a professional and has shown income from profession on mercantile basis. There is no reason to consider and allow expenditure to the assessee in A.Yrs. 1992-93 & 1993-94 on that basis. Arguing so, the Ld.DR submitted that the addition has been made rightly in the hands of the assessee. Further, the ld. DR relied on the order of the ld. CIT(A), the operative part of which is as under:-