2000 (7) TMI 216 - AT - Income Tax

Issues Involved:
1. Addition of Rs. 2,31,000 for want of documentary evidence.
2. Addition of Rs. 15,30,000 for want of confirmations being filed.
3. Addition of Rs. 50 lakhs for want of confirmation.
4. Addition of Rs. 4,18,000 on account of entries in Annexure-I.
5. Addition of Rs. 9,35,000 for want of confirmation certificates.
6. Addition of Rs. 8 lakhs on account of share capital receipt.
7. Addition of Rs. 40,73,700 on account of membership deposits.
8. Addition of Rs. 5 lakhs towards an estimated income.
9. Refusal to allow deduction for a loss of Rs. 26,83,800 as per the income-tax returns.

Summary:

1. Addition of Rs. 2,31,000 for want of documentary evidence:
The Tribunal found that the total expenses recorded were Rs. 2,79,000, and the balance struck was Rs. 2,31,000. The addition was confirmed as the assessee failed to provide a plausible explanation.

2. Addition of Rs. 15,30,000 for want of confirmations being filed:
The Tribunal noted that the explanation regarding the share application money was not verified from the books of account. The addition was confirmed as the assessee did not furnish any evidence or material to justify deletion.

3. Addition of Rs. 50 lakhs for want of confirmation:
The Tribunal found that the transactions recorded in the cheque book were not substantiated by confirmations from the parties concerned. The addition was confirmed as no documentary evidence was furnished to support the assessee's contention.

4. Addition of Rs. 4,18,000 on account of entries in Annexure-I:
The Tribunal observed that the assessee failed to reconcile the entries amounting to Rs. 4,18,000 with records. The addition was confirmed as the assessee could not substantiate any of the claims made.

5. Addition of Rs. 9,35,000 for want of confirmation certificates:
The Tribunal found that the assessee did not file confirmations or produce the parties when specifically asked by the Assessing Officer. The addition was confirmed as the onus of proving the amounts could not be discharged by the assessee.

6. Addition of Rs. 8 lakhs on account of share capital receipt:
The Tribunal noted that the amounts were stated to be reflected in the books of account. The matter was restored to the file of the Assessing Officer to verify the assertion of the assessee and decide the issue afresh.

7. Addition of Rs. 40,73,700 on account of membership deposits:
The Tribunal found that the Assessing Officer did not verify whether the amounts were reflected in the books of account. The matter was restored to the file of the Assessing Officer to ascertain the nature of the receipts and pass a fresh order.

8. Addition of Rs. 5 lakhs towards an estimated income:
The Tribunal observed that the Assessing Officer did not provide any concrete material to justify the addition. The matter was restored to the file of the Assessing Officer to decide the issue afresh.

9. Refusal to allow deduction for a loss of Rs. 26,83,800 as per the income-tax returns:
The Tribunal held that such loss is not allowable to be deducted from the income determined as undisclosed income for the block period under Chapter XIVB. The ground of appeal was rejected.

Additional Grounds:
The Tribunal found that the assessee was provided with photocopies of the seized material and due opportunities were given. The additional grounds raised by the assessee were dismissed as not maintainable.

Conclusion:
The appeal of the assessee was allowed in part for statistical purposes, with certain matters restored to the file of the Assessing Officer for fresh consideration.

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