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TMI Blog2019 (7) TMI 1029X X X X Extracts X X X X X X X X Extracts X X X X ..... it balances available in the name of the assessee are of ₹ 71,323/- A0 has asked the assessee to file reconciliation, but of no avail. As such difference of (₹ 71,323 ₹ 26,614) ₹ 44,709/- is added to the total income of the assessee. CIT(A) confirmed the order of the Assessing Officer. Even before us, no reconciliation statement has been filed, therefore, we find no reason to interfere with the order passed by the ld. CIT(A). Thus, this ground of appeal raised by the assessee is dismissed. Allowance of interest claim - HELD THAT:- Before us assessee has submitted that the assessee is having jewellery business also and interest paid is belonging to the jewellery business in pawn broking business. This fact w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 4,64,000/-, the same is treated as the assessee s undisclosed investment in gold ornaments and added to the total income of the assessee. CIT(A) confirmed the order of the Assessing Officer. Even before us, the AR of the assessee is not able to place any material to show that the gold ornaments to the extent of 187 grams belonging to the assessee. We find no infirmity in the order passed by the CIT(A). Thus, this ground of appeal raised by the assessee is dismissed. - ITA Nos. 401 & 402/VIZ/2018 - - - Dated:- 17-7-2019 - Shri V. Durga Rao, Hon ble Judicial Member And Shri D.S. Sunder Singh, Hon ble Accountant Member For the Assessee : Shri G.V.N. Hari Advocate. For the Departmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome filed on 21/03/2014 was selected for scrutiny manually by issuing notice u/sec. 143(2) on 17/09/2014. During the course of assessment proceedings, the Assessing Officer has noticed on verification of the balance sheet that the assessee has disclosed balance with the banks to the tune of ₹ 26,614/-, however, as per the statements obtained, credit balances available in the name of the assessee are of ₹ 71,323/- The Assessing Officer has asked the assessee to file reconciliation, but of no avail. As such difference of (₹ 71,323 ₹ 26,614) ₹ 44,709/- is added to the total income of the assessee. 4. On appeal, ld. CIT(A) confirmed the order of the Assessing Officer. Even before us, no reconcili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not allowable in cash system of accounting, the same is disallowed and added to the income returned. 6. On appeal before the ld. CIT(A), it was submitted that the interest paid by the assessee belonging to the jewellery business wherein books of account are maintained on mercantile basis and submitted that the interest paid, is allowable. The ld. CIT(A) by considering the explanation of the assessee has observed that the assessee has submitted before Assessing Officer that she is following mercantile system and thereafter by filing a letter stated that she is following cash system and has in fact categorically stated that the method of accounting was stated as mercantile inadvertently , and again stated that mercantile sy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ur Branch as belonging to the appellant. 4) The ld. CIT(A) should have allowed the interest claim of ₹ 1,49,699/-. 9. Ground No. 2 relates to addition of ₹ 4,64,000/-. In the assessment order, the Assessing Officer has noted that as verified from the balance sheet, the assessee has disclosed liability towards gold loan from Union Bank of India, Mudunuru Branch. It was noticed that the assessee has pledged 187 grms. of gold and obtained a loan of ₹ 4,64,000/-. Thus, ornaments were with the bank when the survey was conducted. As verified from the balance sheet, these gold ornaments are not reflected on assets side though the gold loan was disclosed. On being asked to explain the source f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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