Judgment:
MRS. SUJATA MANOHAR, J. :
For the accounting year ended 30th June, 1984 which is the relevant previous year for the asst. yr. 1985-86, the petitioner firm filed its return of income on 25th September, 1985 disclosing an income of Rs. 9,080. Thereafter the assessee of the petitioners was completed under s. 143(3) of the IT Act, 1961 on 27th February 1986. The ITO assessed the total income of the petitioners for the asst. yr. 1985-86 at Rs. 1,67,080. In doing so he made an addition of Rs. 1,58,000 as income from undisclosed sources. Out of this amount of Rs. 1,58,000, a sum of Rs. 1,50,000 represented a loan given by M/s. Bright Diamonds, an associate company of the petitioners, to the petitioner firm. This loan was obtained on 24th September, 1983. It was, however, not reflected in the cash book of the petitioner firm though it was taken into account in the balance sheet. This loan was repaid by the petitioners by two cheques one for Rs. 50,000 and the other for Rs. 1,00,000, dt. 16th August 1984.
2. Pursuant to the assessment so made the petitioner firm was served with a demand notice dt. 13th March, 1986 for Rs. 33,759. Being aggrieved by the assessment order the petitioner firm filed an appeal before the CIT(A) which appeal was heard and finally decided by the CIT by his order dt. 14th September, 1987. By his order of that date the CIT(A) deleted the addition of Rs. 1,50,000.
3. Being aggrieved by this order the Department preferred an appeal before the Tribunal. After the present petition was filed, this appeal of the Department has been heard by the Tribunal and has been decided by it by its order dt. 29th November, 1991. A copy of this order is produced before us and is taken on record. The Tribunal has, for reasons set out in that order, upheld the deletion of Rs. 1,50,000 from the assessment, accepting the explanation given by the petitioner firm. The Tribunal has confirmed the order of the CIT(A) and has dismissed the appeal filed by the Department. As a result the petitioners are now liable to pay tax amount of only Rs. 398. The petitioners are ready and willing to pay the said amount.
4. In the premises nothing now survives in the present petition. The demand notice dt. 13th March, 1986 does not now survive. It is, therefore, set aside. The order of attachment dt. 24th August, 1987, Exhibit I-1 as well as Exhibit I-2, dt. 8th September, 1987 which are pursuant to the notice of demand are also set aside.
The 1st respondent to send a challan to the petitioner for payment of a sum of Rs. 398. On receipt of this challan the petitioner shall pay the said amount of Rs. 398 within one week of the receipt of the challan.
The bank guarantee for a sum of Rs. 50,000 given pursuant to an interim order in this petition dt. 25th September, 1987 shall discharged on payment of the said sum of Rs. 398.