9911796707
TMI Blog2014 (1) TMI 838X X X X Extracts X X X X X X X X Extracts X X X X ..... he addition on the basis of availability of cash in the hands of the firm which case was the introduction by the said partner on the availability of loan from the partner's wife and M/s.Aura Agency , another firm which the Assessing Officer had already verified – Decided in favour of Assessee. The cause for issue of notice u/s.251(2) for enhancing income in the light the CIT(A)having verified the cash book produced by the assessee to explain the payment of cash to the outgoing partners against their capital - there was never an occasion of incurring expenses without adequate cash balance was brought to the notice of the learned CIT(A) who held that this expenditure has been made out of undisclosed holding of cash be taxed in the hands of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dering the submission/explanation of the assessee against the same. 3. That the Id. CIT(A) has not disposed of the grounds taken for addition of Rs.8 lacs in the hand of the assessee firm without interpreting the provisions of Sec 68 of the l.T. Act,1961 properly. 4. That the Id. CIT(A) has wrongly confirmed the Id. A.O.'s addition of Rs.35,391/- as un explained income over and above the declared income of the assessee firm on account of un- reconciled figure between the gross receipt as per P/L Account and TDS certificates without considering the fact that the same has been duly accounted for in the books of the assessee Firm. 5. That the Id. CIT(A-1) has wrongly dealt with a new source of income not dealt by the Id. A.O. and on that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er was undisclosed income of the assessee firm reintroduced in the capital of the partner was brought to tax. 3. Aggrieved, the assessee appealed before the first appellate authority when on the basis of explanation to the capital introduced which portion of the introduction has been taxed by the Assessing Officer was confirmed on the learned CIT(A) indicating that when the bank transfer took place there is no necessity to introduce cash in the assessee firm's books of account insofar as the AR of the assessee explained that the ex-partners required repayment in cash only. With respect to the addition on account of excess receipts disclosed by the assessee, the learned CIT(A) without adjudicating as to how the same could again be brought ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the assessee insofar as he held that the loan creditors were identifiable and genuine and creditworthy to the extent that the loan from the partner's wife was doubted insofar as the cash was after the bank transfer amongst the husband and wife was introduced as cash in the firm which cash was paid to the outgoing partners. The learned CIT(A) on the other hand declining the expenditure of the assessee held that the cash entries have been made to the extent the cash availability was on record insofar as per the fund flow Shri Anil Kumar Chaudhury had sufficient cash on the relevant dates a cash credit in the books of the assessee on 24.3.2008 and 26.3.2008 cannot be held to be the amount available to the firm from the loan to Shri Anil Kuma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ced by the assessee to explain the payment of cash to the outgoing partners against their capital. We have perused the order of the learned CIT(A) wherein he has tried to combine the different negative cash balance from 5th to 16th March,2008 to book peak negative cash balance at Rs.5,33,003 when it was brought to the notice of the learned CIT(A) that there is no negative peak balance insofar as the expenses payable have been paid on the cash being handled by the Depot Manager who had left the service on 5th March and held the cash balance to be handed over to the assessee on 16.3.2008 on his termination of his duty. He was holding cash balance of Rs.2,24,320 which was entered in the cash book on 31.3.2008 when it was not the case of the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y has filed its return indicating the contribution of capital from the various sources observed by the Assessing Officer. For the purpose of payment to ex-partner the acknowledgement of receipt of cash has been inscribed in the Deed of Dissolution forming part of the Paper Book pagers 12 to 16. 5. Now coming to the last issue with respect to confirming the taxation of excess income again by the Assessing Officer and confirmed by the learned CIT(A), the learned Counsel of the assessee has filed the reconciliation statement for TDS at page 18 which reconciliation statement was before the Assessing Officer noting down that the assessee had returned excess income of Rs.35,391 was to be again brought to tax after having been satisfied that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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