9911796707
TMI Blog2021 (4) TMI 343X X X X Extracts X X X X X X X X Extracts X X X X ..... ved from the ADIT, Investigation Wing, Unit-6(2), Jhandewalan, New Delhi, that the assessee, during the impugned assessment year has maintained 5 bank accounts and the total credit appearing in these accounts is Rs. 1,88,28,865/-, whereas the assessee has declared a turnover of Rs. 1,80,76,482/-. Thus, the assessee has concealed the particulars of income amounting to Rs. 7,52,383/-. The AO, therefore, reopened the assessment after taking approval from the competent authority and notice u/s. 148 of the Act was issued to the assessee. Subsequently, various statutory notices were also issued and served on the assessee. Since there was no response from the side of the assessee, a final show cause notice was issued to which the assessee sought a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... receiving back of loans and advances given earlier, receipt from the Directors of the appellant company etc. Firstly, the appellant has nowhere stated that the books of account were audited. The nature of business has not been specified even during appellate proceedings. One of the documents submitted refers to eight bank accounts, some of which are mentioned as (EURO and USD). This suggests that perhaps, the appellant company was in the business of import and export of some items (goods or services). It is thus clear that even while seeking the benefit of 46A, he has not come out with clean hands to defend and argue this case and has not even informed the exact nature of the business, he was engaged in. Accordingly, the explanation of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... requested that in the light of documents, papers and evidences, the same may please be examined now in order to get the justice delivered to the appellant. 5. That the order of the Ld. CIT-Appeals is perverse, adamant and is against the facts. Merely Speed Posting notices that also only two times doesn't mean the opportunity has been provided. Opportunity provided must be real and exhaustive, not customary or illusory. 6. That the addition to the income so made by the Ld. A.O. and upheld by Ld. CIT-Appeals is a hardship and as such be deleted. The appellant craves to add, alter, delete or amend any or entire of the grounds of appeal." 7. The Ld. Counsel for the assessee submitted that the issue in the instant case is the explana ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 1,59,677/- which could be due to changes in the various current assets/liabilities and pending items in bank reconciliation. 9. The Ld. Counsel for the assessee submitted that the books of account are audited u/s. 44AB and the Tax Audit Report was also furnished before the AO along with the return of income filed u/s. 139(1). The AO has not rejected the books of account of the assessee as no defects were found by him. In absence of any defects being found in the books of account, the trading results should have been accepted by virtue of provisions of section 145(1) of the Act and the AO is not authorized to tinker with the results deduced from the books of account examined by the AO. For the above proposition, he relied on the decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he paper book filed on behalf of the assessee. I have also considered the various decisions relied on by the Ld. Counsel for the assessee. I find, the AO, in the instant case, reopened the assessment on the ground that the assessee maintained five bank accounts and the total credits appearing in these accounts is Rs. 1,88,28,865/- whereas the assessee has declared a turnover of Rs. 1,80,76,482/- and, thus, the assessee has concealed the particulars of income amounting to Rs. 7,52,383/- and, during the course of assessment proceedings, there was non-compliance from the side of the assessee for which he made the above addition in the order passed u/s. 147/148/144 of the IT Act, 1961. I find, before the CIT(A), the assessee filed certain addit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e issued, subscribed and paid-up share capital has gone up from Rs. 10 lakhs as on 31st March, 2010 to Rs. 53,37,700/- as on 31.03.2011. Similarly, there are other changes in the various current assets, loans and advances which has gone up or gone down. Therefore, the AO could not have ignored the audited balance sheet filed along with the return of income. I find sufficient force in the argument of the Ld. Counsel that the deposits in the bank accounts stand fully explained and, in fact, the actual deposits in the bank accounts are much more than the amount mentioned by the AO. Considering the totality of the facts and considering the smallness of the amount in question, I do not think it proper to restore the issue back to the file of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
