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TMI Blog2019 (3) TMI 1301X X X X Extracts X X X X X X X X Extracts X X X X ..... the balance sheet and other details uploaded by the tax consultant. AO should have verified these documents and should have arrived at a conclusion whether there could be a profit of ₹ 32,00,791/- out of gross receipts. To our mind, it is totally illogical at the end of the Revenue authorities to draw such inference, without examining the case of the assessee and his prayer. We have extracted the finding of the AO. No reasons are discernible in para 3.5. AO did not want to go through the details. He simply observed that the assessee should have revised the return. It is to be seen that he is not taking the figure of ₹ 36,49,230/- from the return; he is taking figure from external sources. If he takes cognizance of such figure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... against orders of the ld.CIT(A) dated 5.1.2018 and 8.1.2018 passed in the Asstt.Year 2014-15. 2. ITA No.360/Ahd/2018 arose from quantum proceedings, whereas, ITA No.1740/Ahd/2018 arose from penalty proceedings initiated under section 271(1)(c) of the Income Tax Act. 3. First we take quantum appeal i.e. ITA No.360/Ahd/2018. 4. Sole grievance of the assessee is that the ld.CIT(A) has erred in confirming the addition of ₹ 32,00,791/- in the total income of the assessee. 5. Brief facts of the case are that the assessee is an individual. He is running a proprietorship concern viz. Shree Sai Creation where he had carried out business activity of embroidery on job work basis. He has filed his return of income on 25.2.2015 declari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed all the figures in the return of income pertaining to a third party, is not tenable. The concrete evidence is the claim of TDS of ₹ 36,504/- which was rightly claimed pertained to the assessee. If the consultant had made mistake in the columns of Balance Sheet / Profit Loss account, he should have inserted wrong TDS credits, which is not the case here. The assessee had a plea to consider his revised figures of balance sheets as well as Profit Loss account. The said plea cannot be acceded to because there was only one alternate for the assessee to revise his income by filing revised return of income through e-filing mode. The time for filing revised return has already been barred by limitation, the same cannot be considered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claimed in the original return OTHER SOURCES: a) Bank Interest 143 b) Misc. Income 7,457 7,600 Gross Total Income 31,58,115 Less: Deduction under chapter VI-A 50,000 Total income 31,08,115 ROUNDED OFF i.e. 31,08,120 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies on this aspect are not sustainable. We set aside both the orders and remit this issue to the file of the AO for investigation and re-adjudication. The ld.AO shall take into consideration revised balance sheet, profit loss account and any other details submitted by the assessee for explaining the expenditure incurred by him qua the gross receipts received from those two concerns. The ld.AO shall re-determine income of the assessee after providing due opportunity of hearing to the assessee, and take into consideration all the details. It is needless to mention that observation made by us will not impair or injure the case of the AO or will not cause any prejudice to the defence/explanation of the assessee. The assessee will be at lib ..... X X X X Extracts X X X X X X X X Extracts X X X X
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