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TMI Blog2012 (12) TMI 745X X X X Extracts X X X X X X X X Extracts X X X X ..... f the revenue. ITA No.1815/Kol/2010 A.Y 2000-01 [by the assessee] 4. In this assessee's appeal, the assessee has raised following grounds of appeal:- I. For that the Ld. Commissioner of Income Tax (A)-XXXII/Kolkata has erred in law as well as on facts of the case in confirming the addition of Rs.7,84,685.89 out of total Opening Capital of Rs.14,53,685.89 on the grounds which are not correct. 2. For that the Ld. Commissioner of Income Tax (A)-XXXII/Kolkata has erred in law as well as on facts of the case in confirming the disallowance of business loss of Rs.25,670/- on the grounds which are not correct. 3. For that the Ld. Commissioner of Income Tax (A)-XXXII/Kolkata has erred in law as well as on facts of the case in confirming the disallowance of Interest of Rs.19,736/- being the amount of Bank O.D. Interest on the grounds which are not correct. 4. For that the Ld. Commissioner of Income Tax (A)-XXXII/Kolkata has erred in law as well as on facts of the case in confirming the disallowance of legal expenses of Rs. 12,800/- on the grounds which are not correct 5. For that the appellant craves leave to adduce, modify and/or alter the grounds at or before hearing. ITA No.1816/K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . It was the submission that the FD with M/s. Duncans Industries Ltd as also the cash in hand as disclosed by the assessee have not been accepted. The learned AR drew our attention to pages 13-14 of the paper book, which was a copy of ledger account from M/s. C.B Management Services (P) Limited dated 5-2-08 giving the details of the FDs with M/s. Duncan Industries Ltd. It was the submission that all the FDs were before 31-3-2000 and consequently, the same could not be treated as unexplained investments for the financial year 1999-2000 relevant to the AY 2000-01. 7. In regard to cash in hand, it was the submission that no specific evidence has been filed. 8. In reply, the learned DR has vehemently supported the orders of the Assessing Officer and the learned Commissioner of Income-tax (Appeals). It was the submission that the action of the learned Commissioner of Income-tax (Appeals) in confirming the addition/disallowance was liable to be sustained. 9. We have considered the rival submissions. A perusal of the assessment order in respect of said issues shows that the assessee has not produced any evidence in respect of capital accumulated during 1-4-90 to 31-3-96. It is further ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... produced before the Assessing Officer. 13. We have considered the rival submissions. A perusal of the assessment order shows that in the course of assessment the assessee was asked to produce the books of account and supporting evidences in respect of purchase and sales and business loss. It is noticed that the assessee has neither produced books of account nor filed any supporting evidence in respect of purchase, sales and expenses claimed in respect of his business/loss. A perusal of the assessment order page-1 shows that the assessee had appeared before the Assessing Officer and bank statement and other details were furnished. However, no where it has been shown that the assessee has produced the books of account and supporting evidences in respect of his claim on business. A perusal of the order of the learned Commissioner of Income-tax (Appeals) shows that for the same reason the learned Commissioner of Income-tax (Appeals) has confirmed the impugned addition made by the Assessing Officer by disallowing the business loss. Even, before us the assessee has not placed any evidence to substantiate his claim as shown in the trading and P & L account. In the circumstances, we are o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l of the assessment order shows that the Assessing Officer has disallowed the said expenditure on the ground that the same was not shown in the original return. The fact that in response to notice issued u/s.148, the assessee made such claim will not make the claim unacceptable just because it is a fresh claim. The assessee has omitted to make such claim in the original return. In response to notice issued and in the course of re-assessment proceedings the assessee made such claim. A perusal at page 16 of the assessee's paper book, which was the copy of the bill shows that a bill from the advocate has been placed by the assessee detailing the expenditure and that has not been examined by the Assessing Officer. In the circumstances, we are of the view that the issue is liable to the restored to the file of the Assessing Officer for further verification. In the circumstances, the issue is restored to the file of the Assessing Officer for re-adjudication after granting adequate opportunity of hearing to substantiate his claim. In the circumstances, the appeal of the assessee i.e ITA No.1815/Kol/10 for the assessment year 2000-01 is partly allowed for statistical purpose. ITA No.1816/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ile computing the long term capital gains.
21. In reply, the learned DR has vehemently supported the orders of the Assessing Officer and the learned Commissioner of Income-tax (Appeals).
22. We have considered the rival submissions. A perusal of the assessment order as also the order of the learned Commissioner shows that the agreement with the land broker was before the Assessing Officer. He has not allowed assessee's expenditure. It is noticed that the Assessing Officer has not disputed the existence of agreement or veracity of agreement. The agreement having been accepted, the expenditure incurred by the assessee on account of agreement is liable to be allowed. In the circumstances, the finding of the learned Commissioner of Income-tax (Appeals) on this issue stands reversed and the assessing officer is directed to delete the disallowance the sum of Rs. 22,000/- being the amount paid to the land broker while computing the long-term capital gains. In the circumstances, ground nos. 4 &5 of assessee's appeal in ITA No.1816/Kol/10 stand allowed.
23 In the result, the both appeals of the assessee stand partly allowed for statistical purposes as stated above. X X X X Extracts X X X X X X X X Extracts X X X X
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