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TMI Blog2024 (3) TMI 1010X X X X Extracts X X X X X X X X Extracts X X X X ..... the original and rectified balance sheet which are part of assessee s paper-book. We noted that on merits also, the assessee has explained the differentials and hence, the assessment order is neither erroneous nor prejudicial to the interest of Revenue because of non-verification of assessment. AO has verified the complete details as it is evident from the assessee s paper-book that the AO asked for the entire details and the assessee replied the same on various dates. In view of the above, we allow the appeal of assessee and quash the revision order passed by the PCIT. Appeal filed by the assessee is allowed. - Shri Mahavir Singh, Vice President And Shri Manoj Kumar Aggarwal, Accountant Member For the Appellant : Shri S. Sridhar, Advocat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for completion of assessment well in advance. It is even now available in ITBA portal with date and time of uploading. All the details mentioned are capital and its details explaining the increase in capital. Learned Assessing officer, in his order has clearly mentioned the fact that he verified the financials and the capital account details etc . which is nothing but the details mentioned by the CIT in his order. Hence the order is not at all erroneous as alleged. So the alleged improper verification or extent of verification is all outside the ambit of scope of section 263. 3. Brief facts are that the assessee is an individual doing the business of jewellery. Originally, the assessee filed return of income for the relevant assessment yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat on verification of return and verification of papers, there is huge difference in capital figures and assets and the figures mentioned in the balance sheet enclosed with the return of income does not contain the correct picture but the capital account copy filed during the course of scrutiny assessment proceedings wherein the assessee s mother had invested 14000 grams of gold jewels in ARK jewelers was the capital investment and it is on account of capital distributing her assets to her legal heirs after she expired on 27.01.201. The ld.counsel explained that the assessee during scrutiny assessment proceedings submitted the correct balance sheet as on 31.12.2017 and the capital balance declared in the balance sheet filed along with the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... revenue, requiring an intervention to cure the order made erroneous and prejudicial to the interest of revenue. Aggrieved, assessee is in appeal before the Tribunal. 4. We have heard rival contentions and gone through facts and circumstances of the case. We noted that the ld.counsel for the assessee before us argued that the financial statements formed part of the return of income filed did not capture the actual financial position and in view of the mistake formed part of the balance sheet filed by the original chartered accountant was revised by successor chartered accountant wherein the assessee had brought on record the correct income tax computation along with the financial statements including the capital account and ledger account r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issions dated 17.06.2023, wherein original balance sheet clearly shows differential figure of Rs. 1,57,18,810/- and there is increase in proprietor s capital to that extent. 6. We noted that the assessee has filed correct balance sheet wherein complete details of capital introduction is provided as on 31.03.2014 and as on 31.03.2015. In the balance sheet, the assessee has shown capital account at Rs. 2,69,78,493/- and consequent application of funds to the same. The ld.counsel for the assessee drew our attention to Annexure-3 filed by Revenue i.e., CIT-DR along with their written submissions wherein capital account on sale of gold jewels of 5000 grams for an amount of Rs. 1,17,50,000/- is debited and capital gain is declared at Rs. 39,16,40 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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