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TMI Blog2022 (3) TMI 463X X X X Extracts X X X X X X X X Extracts X X X X ..... the CIT(A). In our view, if the accretions to the capital account emanate from the returns filed by the partnership firms and the assessee in his individual capacity for Assessment Years 2012-13 and 2013-14 and if the said source is not disputed by the Revenue in a manner known to law, the accretions to the capital account and the corresponding opening balance in the capital account in Assessment Year 2014-15 cannot be doubted or disputed. Thus it would be just and appropriate to set aside the order of CIT(A) and remand the case to the AO for consideration denovo in the light of the returns filed for Assessment Years 2012-13 and 2013-14 and after verification, accept the claim of the assessee, so long as the source of the accretions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Amount Rs. Amount Rs. 1 2010-2011 The Closing Capital Balance for the Financial Year 20102011 as declared in the ITR Form ₹ 3,07,24,983/- --- 3,07,24,983/- 2 2011-2012 a. Opening Capital Balance: b. Net Profit made from the Partnership Firms i.e., M / s. Shri Lakshmi Venkateshwara Minerals and M/s. Shri Lakshmi Venkateshwara Transport c. Income from Partnership Firm i.e.,M/s. ShriLakshmi Venkateshwara Minerals d. Incomefrom Partnership Firm i.e., M/s. Shri Lakshmi Venkateshwara Transport. e. LIC Matured f. Less: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e returns of income. The working of the opening capital balance as was given by the assessee was not accepted by the AO. 4. It can be seen from the capital balance in the table given above that the assessee was a partner in a partnership firm Sri Lakshmi Venkateshwara Minerals and Sri Lakshmi Venkateshwara Transport and the share of income as well as drawing and maturity proceeds from investments has been shown as accretions to the capital account. According to the AO, since the assessee as well as the partnership firms from which the assessee claims to have obtained share of income had not filed its return of income for Assessment Years 2012-13 to 2013-14, the opening capital balance could not be accepted to the extent of ₹ 17,78, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i Venkateshwara Minerals and Sri Lakshmi Venkateshwara Transport for Assessment years 2012-13 and 2013-14 had been filed by the assessee and therefore the additions made for the sole reason that the returns were not filed for the aforesaid stated Assessment Years should be deleted. Copy of the returns filed by the assessee in this regard was also filed along with the application under section 154 of the Act. These returns had been filed on 22.01.2017 after the date of the order dated 30.11.2016 which is the date on which the AO passed the Assessment Order making the aforesaid additions and that too in response to notice u/s. 148 of the Act issued by the AO. The AO dismissed the application under section 154 of the Act by an order dated 01.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce in the capital account in Assessment Year 2014-15 cannot be doubted or disputed. We are therefore of the view that it would be just and appropriate to set aside the order of CIT(A) and remand the case to the AO for consideration denovo in the light of the returns filed for Assessment Years 2012-13 and 2013-14 and after verification, accept the claim of the assessee, so long as the source of the accretions as declared in the returns for Assessment Years 2012-13 and 2013-14 are not disputed in a manner known to law. With these observations, we allow the appeal of the assessee for statistical purposes. 9. In the result, the appeal is treated as allowed for statistical purposes. Pronounced in the open court on the date mentioned on the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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