9911796707
TMI Blog2013 (6) TMI 546X X X X Extracts X X X X X X X X Extracts X X X X ..... he facts and circumstances of the case, the learned Commissioner of Income Tax (Appeals)-XXIV, Kolkata erred in holding the learned AO's action of adding back sum of Rs.1,19,421 in the appellant's income on account of suppressed purchase. 3. That based on the facts and circumstances of the case, the learned Commissioner of Income Tax (Appeals)-XXIV, Kolkata erred in holding the learned AO's action of adding back sum of Rs.38,718/- in the appellant's income on account of closing stock. 4. That based on the facts and circumstances of the case, the learned Commissioner of Income Tax (Appeals)-XXIV, Kolkata erred in holding the learned AO's action of adding back sum of Rs.1,35,621 in the appellant's incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of accounts, bills, vouchers, bank statements etc. were produced before the AO. In this case, a survey was conducted u/s 133A on 12.0.2007. During the course of the said survey proceedings certain documents were impounded marked as KK/1, KK/2 and KK/3. Some 18 bank accounts held in the name of the appellant as well as his family members and associates were inventorised. A back was taken of certain data stored in the computer system lying at the office premises of the appellant. This back up was kept in a CD and the said CD was impounded by the income tax officials on 12.09.2007 and marked as KKC/1. At the time of survey on 12.09.2007, the audit for the financial year 2006-07 was going on and the data in the computers were getting re-enter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 539 1,52,743 8,796 4. Cash 56,101 1,91,722 1,35,621 The AO also asked to explain the reasons why the negative balances aggregating to Rs.41,219 (comprising of Rs.24,688 and Rs.16,531) appeared in Cash - Daily Summary Report for the months of August 2006 and November 2006 respectively generated out of the said data CD. A detailed explanation was filed along with the requisite evidences through letter dated 21.12.2009 in regard to the said queries of apparent discrepancies on account of purchases, closing stock, telephone, cash between the audited accounts and the reports so generated. The said reply also explained the negative cash balances. It was also explained to the learned AO that the data in the CD was not reliable and also f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lieved all the explanations both - written and verbal - furnished by the appellant during the course of the assessment proceedings, added the sums stated in the paragraphs 8,9 and 12 to the appellant's income. The whole of demand of Rs.1,147,753 raised by the learned AO through his impugned assessment order dated 29th December 2009 passed under section 143(3) of the said Act read with the notice of demand issued under section 156 of the said Act is wholly arbitrary and unjustified." 3. The ld. CIT(A) thereafter took upon himself to adjudicate the issue raised as per the grounds of appeal by the assessee appellant when he only granted relief with respect to telephone expenses on the premise that this claim had nothing to do with the differ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relating to the claim of the assessee as much as the purchase and sales have been verified by the VAT authorities which tally with the audited accounts filed with the AO. The ld. Counsel argued that it was the case of the assessee to assist the revenue in so far as the survey had not disclosed any undisclosed income in the hands of the assessee was to be specifically brought to tax from comparables and not uncomparables to the extent that the figures in the CD were the figures were to be subjected to audit and were corrected as per audit objections. When the ld. CIT(A) appreciated the facts that the telephone expenses disallowed were claimed as expenses in accordance with the bills paid for by the assesee and not because excess claim was m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... computer are subject to audit and the basic mistakes or errors committed by the accountant are to be rectified on the objections of the audit team which are rectified may or may not be corrected in the soft copy, in so far as, the hard copies generated of the surveyed e-filing of the return which figures cannot be disturbed as a matter of suppression or willful declaration for undisclosed income has been considered by the authorities below on presumption only. We do find that the so called additions as raised by the assessee appellant in the grounds above would stand to nullity in so far as they stood corrected to the extent that their reconciliation would determine the excess income rendered by the assessee were reconciliation to the addi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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