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TMI Blog2023 (1) TMI 759X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee to the tune of Rs. 10,34,164/- as per Profit and Loss Account. 3. That the Ld. CIT(A) has erred in confirming the action of the Assessing Officer in sustaining the addition of Rs. 64,47,530/- u/s 68 of the Income Tax Act, 1961 on account of amount credited in capital account of the appellant. 4. That the Ld. CIT(A) has erred in confirming the action of the Assessing Officer in making the addition of Rs. 59,89,500/- on account of unsecured loans received from Sh. Harish Gupta and Dyal Sarup (HUF) u/s 68 of the Income Tax Act. 5. That the Ld. CIT(A) has erred in confirming the action of the Assessing Officer in making the addition of Rs. 38,00,196/- on account of long term capital gain and disallowing the long term capital loss as claimed by the assessee to the tune of Rs. 46,24,364/- 6. That the Ld. CIT(A) has ignored the documentary evidences and submissions as made by the assessee during the remand proceedings and submission as already made before him. 7. That the Ld. CIT(A)/Assessing Officer ought to have allowed the assessed brought forward losses of Asstt. Year 2012-13 & 2013-14 to the tune of Rs. 78,354/- and Rs. 45,66,708/-respectively, to be set off aga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee are petty expenses, out of which, the major expenses are in respect of salary to staff of Rs. 1,65,500/-. Once the assessee has furnished the relevant documents before the Ld. CIT(A) and after admitting the same, the Ld. CIT(A) has called for remand report from the Assessing officer, therefore, the Ld. CIT(A), in our view, ought to have looked into these documents. After considering the facts and circumstances of the case and going through the evidences furnished, we do not find any justification on the part of the lower authorities for disallowing the business loss to the tune of Rs. 10,34,134/- to the assessee. The disallowance made by the Assessing officer in this respect is, therefore, ordered to be deleted. 8. Ground No.3: Vide ground No.3, the assessee has challenged the action of the CIT(A) in confirming the addition of Rs. 64,47,530/- u/s 68 of the Income Tax Act on account of amount credited in the capital account of the assessee. 9. The brief facts relating to the issue are that the Assessing officer at the time of assessment proceedings, noticed that the assessee has made addition of Rs. 64,47,530/- to its capital account. The assessee in this respect has explain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee has successfully proved the sale transaction of the land for Rs. 95 lacs out of which, the assessee received Rs. 47,50,000/-which were directly deposited interest eh firm's loan account. .Therefore, the addition made into the capital account of the said amount cannot be doubted. Relating to the rest of the amount, the Ld. Counsel for the assessee has submitted that some of the amount was withdrawn from its firm M/s Akshit Enterprises and some of the amount was received from withdrawals of its Yes bank account. The copy of the bank account statement were furnished before the Ld. CIT(A), however, the Ld. CIT(A) failed to look into the aforesaid bank statement etc. In view of this, we do not find justification on the part of the CIT(A) in sustaining the aforesaid additions, the same is accordingly ordered to be deleted. 12. Ground No. 4: Vide ground No.4, the assessee has agitated the action of the Ld. CIT(A) in confirming the addition of Rs. 59,89,500/- on account of unsecured loans received from Shri Harish Gupta and Dyal Sarup (HUF) u/s 68 of the Income Tax Act. So far as the loan of Rs. 47,50,000/- received by the assessee from brother Shri Harish Gupta is concentred, the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee. During the assessment proceedings, the Assessing officer observed that the assessee and his brother had purchased a commercial property at the cost of Rs. 90 lacs on 31.7.2006 whose circle rate was Rs. 11,000/- per square yard. However, the assessee and his brother sold the aforesaid property showing the same as 'residential property' on 18.2.2014 for a consideration of Rs. 95 lacs. The Assessing officer observed that the assessee could not explain as to how the status of the property as 'commercial property' changed to that of 'residential property'. He, accordingly, applied circle rate of commercial property and recomputed the capital gain at Rs. 73,17,450/- and allowed the Long Term Capital Loss of Rs. 38,00,196/-. The Ld. CIT(A) confirmed the addition so made by the Assessing officer. 14. We have heard the rival contentions and gone through the material available on record. In this case, the assessee initially had purchased the property as commercial property for Rs. 90 lacs. However, while selling the property the assessee sold the property as residential property. The Stamp Duty Authority has accepted the said property as residential property. Apart from th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee has submitted that the aforesaid brought forward losses of AY 2012-13 and AY 2013-14 inadvertently could not be claimed in the relevant column of the return. However, during the course of assessment proceedings, the same were very much claimed. Further, that the claim was also made before the Ld. CIT(A) but the lower authority failed to look into the aforesaid claim of the assessee. 18. We have considered the rival contentions. It has been time and again held that the Income Tax Authorities should charge legitimate taxes from the assessee. An assessee should not be punished for his/ her bonafide mistake. The Instructions in this respect have also been issued by the CBDT from time to time that the Income Tax Authorities should assist the assessee in correctly making their claim in the return. 19. In view of this, we direct the Assessing officer to verify the claim of the assessee regarding the brought forward losses of the previous years i.e. AYs 2012-13 and 2013-14 and if the claim of the assessee is found correct, then to give set off adjustments of the same in the current year under considerations 20. In view of the observations made above, the appeal of the assessee is t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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