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TMI Blog2021 (5) TMI 250X X X X Extracts X X X X X X X X Extracts X X X X ..... from partnership firm, income from the head 'business or profession' as well as income from the head 'other sources'. He filed his e-return of income online on 09.03.2017 declaring total income of Rs. 61,61,350/-. The case was selected for scrutiny. The AO during the course of assessment proceedings observed that the assessee had large advances from customers and sundry creditors to the tune of Rs. 2,19,08,976/-. When questioned, the assessee replied that he had declared total income u/s. 44AD of the Act and that he was not required to maintain books of account. The assessee submitted as follows: "In reply to your Show Cause Notice, I beg to state as under: 1) On Scrutiny it is found that the Final Accounts and Balance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eposit shown in the Return of Income for the A.Y.2016-17 21,73,987.00 A.Y.2017-18 21,05,214.00 A.Y.2018-19 20,49,607.00 63,28,808.00 Interest on F.D. to be shown in the return of Income for the A.Y.2019-20 Rs. 99,70,179.00 It appears from the records that there was no income as interest earned or accrued during the F.Y. 2012-13, 2013-14 and 2014-15 relevant to A.Y. 2013-14, 2014-15 and 2015-16. I further undertake to show the Balance Interest on Fixed Deposit of Rs. 99,70,179.00 on maturity of Fixed Deposit in the return of income and I never suppress any income as interest on Fixed Deposit on the said amount of Fixed Deposit. Under the foregoing facts and circumstances, you are earnestly requested not to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reme Court in the case of Taparia Tools Ltd. Vs. JCIT [ (2015) 55 taxmann.com 361 (SC) for the proposition that, entries in the books of account are not determinative or conclusive and the matter is to be examined on the touchstone of provisions contained in the Act. He also relied on the CBDT Circular no. 14(XL-35) dated 11.04.1955 and letter no. F.81/27/65-IT(B) dated 18.05.1965, wherein it has been stated that the AO shall not take advantage of the ignorance of the assessee as to his rights etc. He also relied on the judgement of the Hon'ble Calcutta High Court in the case of Mayank Poddar (HUF) vs. WTO reported in 262 ITR 633 for the proposition that there is no estoppel against law. He also on the real income theory and submitted t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee on yearly basis for several years and that they have brought into the Balance sheet in this year and it was due to the ignorance that the accountant randomly gave some figures were put on the liabilities side of the Balance sheet to tally the amount of fixed deposits held by the assessee brought into the assets side of the Balance sheet. He filed the assessment orders passed in the case of the assessee, after re-opening of the assessments u/s. 148 of the Act for the AYs 2012-13, 2013-14, 2014-15 & 2015-16 and submitted that all these fixed deposits and the interest therein were brought to tax by the AO in scrutiny proceedings in these assessment years and under those circumstances the addition made for sources of fixed deposits dur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntions. On careful consideration of the facts and circumstances of the case, perusal of the papers on record, orders of the authorities below as well as case law cited, we hold as follows. 6. We find on facts, the fixed deposits were made by the assessee over a period of time during the AYs 2012-13, 2013-14, 2014-15 & 2015-16. This is evident from the record. It is also recorded by the AO that these sundry creditors and advances from customers appearing in the balance sheet are bogus and that no such creditors or customers exist. If on the asset side of the balance sheet the fixed deposits belonging to the earlier assessment years are taken as the opening balance as these are brought forward from earlier year, then in the liability side of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d take the initiative in guiding a taxpayer where proceedings or other particulars before them indicate that some refund or relief is due to him. This attitude would, in the long run, benefit the department, for it would inspire confidence in him that he may be sure of getting a square deal from the department. Although, therefore, the responsibility for claiming refunds and reliefs rests with the assessees on whom it is imposed by law, officers should- (a) draw their attention to any refunds or reliefs to which they appear to be clearly entitled but which they have omitted to claim for some reason or other; (b) freely advise them when approached by them as to their rights and liabilities and as to the procedure to be adopted for claimi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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