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TMI Blog2024 (8) TMI 621X X X X Extracts X X X X X X X X Extracts X X X X ..... rtain to FY 2012-13 to 2013-14 and the AO has passed assessment u/s. 143(3) for AY 2013-14 on 29.01.2016 wherein the AO has accepted the closing balance of the ledger account of director/Sri B. Ravi Kumar Reddy. We note from the ledger account of Sri B. Ravi Kumar Reddy that there is a credit of Rs. 12,40,74,520 and money has been transferred through bank account and only Rs. 9,00,000 has been credited towards director s remuneration. AO has completed the assessment for the current AY 2015-16 by considering the transactions of the assessee made in the previous assessment year. We also note that the AO has passed order u/s. 143(3) for AY 2013-14 on 29.01.2016 considering the transactions pertaining to FY 2012-13 and 2013-14 wherein the AO ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... artment, the officers and officials got transferred from this office who had updates of day to day office work. As such, under the circumstances, condonation of delay of 26 days in filing of appeal before the ITAT is requested. After hearing both the sides, we note that there is sufficient cause in the reason submitted by the revenue and following the judgment of the Hon'ble Apex Court in the case of Collector, Land Acquisition Vs. MST. Katiji and Others (1987) 167 ITR 471, delay in filing the appeal before the Tribunal is condoned. 4. The brief facts of the case are that the assessee filed return of income for AY 2015-16 on 30.09.2015 declaring a loss of Rs. 8,62,90,825. The assessee is engaged in the business of manufacturing industry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 u/s. 68. 6. The assessee filed appeal before the CIT(Appeals). The CIT(A) after examining in detail allowed the appeal of the assessee on merits, holding as under:- 5.3. The contention of the Appellant, Grounds of appeal, the statement of facts, online submissions of the appellant and the case laws relied upon and the assessment order have been considered. The argument of the appellant that the addition made of the sum of Rs. 11,59,30,375/- was the opening balance and no transaction pertained to the current AY 2015-16 (year under appeal) has been considered. The appellant has also argued without prejudice, that no addition can be made in respect of the opening balances as on 1.4.2014. The appellant has also stated that there was an assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as not substantiated the same. The CIT(A) has merely stated that since the addition made by the AO is a previous year s transaction and therefore the opening balance cannot be added as income of the current year, without going into the merits of the case that the transactions of the previous year does not tally with the bank statements which will effect in the opening balance. She therefore argued that the order of the AO is to be upheld. 9. On the other hand, the ld. AR relied on the order of the CIT(A) on merits of the case and filed a written synopsis and further submitted that the transactions were undertaken in the previous year and referred to the Paperbook filed by the assessee with the ledger account and copy of bank statements. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evious assessment year. We find substance in the submissions of the ld. AR that the previous year s transaction cannot be considered as income in the current assessment year. We note that the transactions pertain to FY 2012-13 to 2013-14 and the AO has passed assessment u/s. 143(3) for AY 2013-14 on 29.01.2016 wherein the AO has accepted the closing balance of the ledger account of Sri B. Ravi Kumar Reddy. We note from the ledger account of Sri B. Ravi Kumar Reddy that there is a credit of Rs. 12,40,74,520 and money has been transferred through bank account and only Rs. 9,00,000 has been credited towards director s remuneration. The AO has completed the assessment for the current AY 2015-16 by considering the transactions of the assessee ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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