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TMI Blog2022 (4) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee and sustained additions made by the assessee towards undisclosed income on net worth method. Assessee should get one more opportunity before lower authorities to explain his case - DR vehemently argued and requested to set aside appeals to the CIT(A) to re-examine claim of the assessee. Considering complexity involved in the case, we deem it appropriate to set aside appeals of the assessee to the file of the learned CIT(A) and direct the CIT(A) to reconsider the issues afresh in light of various additional evidences filed by the assessee, including reconciliation filed for explaining undisclosed income computed by the AO - Appeal filed by the assessee for the assessment year 2009-10 is treated as allowed for statistical purposes. - I.T.A. Nos. 113 to 119/Chny/2020 I .T.A.Nos.354 to 356/Chny/2020 - - - Dated:- 18-3-2022 - SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER Appellant by : Mr. T.Banusekar, C.A Respondent by : Mr. Durgesh Sumrott, CIT Mr. Sajit Kumar, JCIT Date of Pronouncement : 18.03.2022 ORDER PER BENCH : The bunch of ten appeals filed by two different assessees are directed against separa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase in the capital balance commensurate to the value of fixed assets introduced in the Balance Sheet considering the double entry accounting system followed by the appellant. 10. For that the Commissioner of Income Tax (Appeals) erred in not considering the differences in asset values arising out of the Balance Sheet prepared by the appellant as against the Balance Sheet prepared by the Assessing Officer. 11. For that the Commissioner of Income Tax (Appeals) failed to adjudicate on the fact the Assessing Officer erred in not considering loan from Perambur Co-operative and Housing Society in liabilities side of the Statement of Affairs. 12. For that the Commissioner of Income Tax (Appeals) failed to adjudicate that the Assessing Officer has not reckoned the rental advance as receivable by the appellant in the Statement of Affairs prepared by him. 13. For that the Commissioner of Income Tax (Appeals) failed to adjudicate on the issue raised that stock of raw material and work-in-progress should not be reckoned in the preparation of Statement of Affairs for the year under consideration. 14. For that the Commissioner of Income Tax (Appeals) failed to appre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t worth method, but could not succeed. The learned CIT(A), rejected arguments of the assessee and sustained additions made by the Assessing Officer by holding that the assessee has failed to substantiate his claim with necessary evidences, including books of account to reconcile undisclosed income determined by the Assessing Officer on the basis of net worth method. Aggrieved by the learned CIT(A) order, the assessee is in appeal before us. 4. The learned AR for the assessee submitted that the learned CIT(A) has erred in confirming additions made by the Assessing Officer towards undisclosed income on the basis of net worth method, ignoring various evidences filed by the assessee, including books of account prepared for the relevant assessment years explaining source for various investments and expenses. The learned AR further submitted that the assessee has prepared books of account and explained source for investments. Further, the Assessing Officer has considered certain assets which were acquired prior to assessment year 2009-10 and made additions on the basis of net worth method by allowing deductions towards income declared by the assessee in the return of income filed for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d during the course of search. Admittedly, the assessee has made disclosure of undisclosed income on the basis of net worth method and admitted undisclosed income of ₹ 28,92,75,497/- for the assessment years 2009-10 to 2015-16. The Assessing Officer had also determined undisclosed income on the basis of net worth method, but there is difference between undisclosed income computed by the assessee, when compared to undisclosed income determined by the Assessing Officer for all assessment years. Before the learned CIT(A), the assessee claimed that he has reconstructed his books of account with reference to seized materials and has reconciled undisclosed income determined by the Assessing Officer to the undisclosed income offered by the assessee in returns filed in response to notice issued u/s.153A of the Act. The learned CIT(A) rejected books of account on the ground that same were reconstructed after date of search and said finding appears to be reasonable. However, when the assessee has filed reconciliation explaining difference in undisclosed income computed by the Assessing Officer when compared to undisclosed income returned by the assessee with certain explanation, then t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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