- (1.) MR . Mathur, learned counsel for the Department, submits that since common issues are involved in these three appeals, therefore, they can be heard and disposed of by common order. He further submits that main order has been passed in the appeal relevant to the asst. yr. 1994 -95.
(2.) SINCE common issues are involved in these three appeals, we hear and dispose of these appeals by this common order. The detailed order in these three appeals is in the appeal relevant to the asst. yr. 1994 -95. The appeal for asst. yr. 1994 -95 has been admitted in terms of the following questions : '1. Whether, in the facts and circumstances of the case, the Tribunal had erred in law in deleting the additions regarding underweighing which were duly supported by the material on record and finding of fact is perverse? 2. Whether, in the facts and circumstances of the case, the Tribunal was right in law in reducing the disallowances made by the AO to an arbitrary hypothetical figure without any basis and when the same were not supported by the vouchers or books of accounts? 3. Whether, in the facts and circumstances of the case, the Tribunal was justified in setting aside the interest paid to the wife of assessee when it was proved that the loan was advanced not for business purposes and whether, the said deduction is in contravention of Section 36(1)(iii) of the Act?'
(3.) FOR asst. yr. 1994 -95, return was filed disclosing the income of Rs. 1,45,608 on 27th Jan., 1997. That was a belated return. Therefore, notice under Section 148 was issued, which was duly served on the assessee on 6th Feb., 1997. In response to the notice, assessee replied that return filed on 27th Jan., 1997 may be treated as return in compliance of the notice issued under Section 148. Notices under Sections 143(2) and 142(1) were issued along with detailed query letter. Some details were filed as required, but books of accounts and vouchers were not produced. Then summon under Section 131 of IT Act was issued for personal attendance. The assessee took the pretext that he is suffering from heart diseases and he could not appear in person.;