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TMI Blog2014 (2) TMI 1261X X X X Extracts X X X X X X X X Extracts X X X X ..... 15 lakhs and the same has to be sustained. We set aside the order of Commissioner of Income Tax (Appeals) on the issue of deleting the addition of ₹ 15 lakhs. - Decided in favour of revenue - ITA No.1222(Mds)/2013 - - - Dated:- 12-2-2014 - Dr. O.K.NARAYANAN, VICE-PRESIDENTAND SHRI VIKAS AWASTHY, JUDICIAL MEMBER Appellant by : Shri Shaji P. Jacob, IRS, Addl.CIT Respondent by : Shri Devendra Kumar Bhandari, CA ORDER PER Dr.O.K.NARAYANAN, VICE-PRESIDENT This appeal is filed by the Revenue. The relevant assessment year is 2008-09. The appeal is directed against the order of the Commissioner of Income Tax (Appeals)-VI at Chennai, dated 17.1.2013 and arises out of the assessment completed under Section 143(3) of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Appeals) in his order observed that the assessee had not maintained proper books of accounts and in order to overcome the said deficiency, he had offered an additional income of ₹ 15 lakhs over and above his regular income. The assessee has accordingly offered the said amount by crediting these monies to the capital account and thus brought to tax. The Commissioner of Income Tax (Appeals) observed that as the books were not maintained regularly and additional income brought to tax, it would not be fair to go into each and every item of expenditure debited in profit loss account, especially, for estimating the amount admitted as additional income. On the above ground, the said addition of ₹ 15 lakhs was deleted by the Commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from M/s Gautham Pharma at ₹ 15.07 lakhs which was prepared in accordance with the books of accounts maintained according to the audit report certified by the Chartered Accountant; 2.4 The ld CIT(A) ought to have appreciated that the absence of bills / vouchers in support of expenditure debited in the profit and loss account of the proprietory concern, Gautham Pharma which were certified by a qualified Chartered Accountant is an issue independent of the additional income admitted under survey u/s.133A, as the said income of ₹ 15 lakhs was voluntarily disclosed by the assessee over and above the regular income, which means the regular income as per profit and loss account; 2.5 The ld CIT(A) ought to have appreciated th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vey. The Assessing Officer has also pointed out that even though there is a remarkable increase in the turnover reported for the impugned assessment year, the increase reflected in the corresponding gross profit is not satisfactory, which goes to show that the assessee has inflated many of the expenditures, especially after the date of survey. The Assessing Officer has come to a formidable conclusion that the assessee has nullified the effect of offering additional income of ₹ 15 lakhs by overstating the expenditure, especially after the date of survey. 8. We find that the detailed findings arrived at by the Assessing Officer have not been considered at all by the Commissioner of Income Tax (Appeals). The Commissioner of Income Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tax (Appeals). The Commissioner of Income Tax (Appeals) has only stated that once the assessee has technically offered this income of ₹ 15 lakhs for the impugned assessment year, it is not necessary to examine the bonafides of the expenditure worked out on estimated basis. This cannot be a good proposition in the matter of assessment. Even if the assessee has brought additional income, it is incumbent upon the Assessing Officer to examine the genuineness of the expenditure claimed by the assessee. This is more so important in a case where the assessee has deliberately made attempts to nullify the effect of the additional income offered by inflating the quantum of expenditure. Therefore, we find that the addition cannot be deleted on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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