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TMI Blog2001 (10) TMI 245X X X X Extracts X X X X X X X X Extracts X X X X ..... perly appreciating the facts of the case. 2.1. That the learned CIT(A) while deleting said addition has ignored the fact that the AO has specifically mentioned in the assessment order that the transaction has already taken place and this fact has not been denied by the assessee even before the learned CIT(A). 3. That the learned CIT(A) has erred in law and on facts in deleting the addition of Rs. 10,000 made on account of unexplained receipts on the basis of seized paper at serial No. 4 of Annex. B-1, without properly appreciating the facts of the case. 3.1. That the learned CIT(A) while deleting the said addition has made incorrect observations that the present AO was satisfied after seeing the copies of accounts. The order of the learned CIT(A) thus vitiated on facts on this score. 4. That the learned CIT(A) has erred in law and on facts in deleting the addition of Rs. 6,022 made for concealed sale receipts on the basis of seized paper at serial No. 107 of Annex. B-6 without properly appreciating the fact of the case. 5. That the order of the learned CIT(A) being erroneous in law and on facts, be set aside and the order of the AO be restored." 3. Subsequently, vide le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i Lal. It was claimed that this paper had nothing to do with assessee-firm as the same was in the handwriting of the partner whereby through such letter, he wanted to square-up the petty amount of Rs. 15. The CIT(A) observed that some documents referred to the 'words' "ham" or "zamar". So, it concerns the assessee-firm. However, it was not understood how the figure of Rs. 15 has been taken to be Rs. 15,000 by the AO. The CIT(A) has, therefore, set aside the issue to the file of the AO to decide the issue afresh after recording the statement of Shri V.K. Bansal and other partners of the firm and to find out, who Khem Chand, Hitler Moti Lal and other connected persons were. 5.2. Second and third issues set aside by the CIT(A) related to the addition on account of unexplained investment of Rs. 4,22,172 in the business and unexplained profits of Rs. 7,59,801 in the business. During the course of search and seizure operation, certain documents were seized from the residence of Shri L.D. Mittal. During search, information was received that part of the assessee's books of accounts were kept at the residence of Shri L.D. Mittal, i.e., at 106, Swami Bagh, Agra. Consequently, search and se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... On appeal, the CIT(A) has set aside this issue and restored it back to the file of the AO. 5.5. While pleading for the admission of the additional grounds of appeal, the learned Departmental Representative submitted that the issues which have been set aside by CIT(A), were also challenged by assessee before the Tribunal by way of appeal. Because the assessee had challenged the findings of the CIT(A) in setting aside the assessment, the Revenue did not raise this ground in the original grounds of appeal. But subsequently, when the Revenue learnt that the assessee has withdrawn its appeal filed before the Tribunal, it became necessary for the Revenue to raise this ground by way of additional ground of appeal. As the additional ground of appeal arises out of order of the CIT(A), the same may be admitted. relying on the decision of Hon'ble Delhi High Court in the case of CIT vs. Mahalaxmi Sugar Mills (1993) 200 ITR 275 (Del) and decision of Hon'ble Allahabad High Court in the case of Swadeshi Cotton Mills vs. CIT (1989) 79 CTR (All) 87: (1989) 180 ITR 651 (All), the learned Departmental Representative pleaded that the additional grounds of appeal may be admitted. 5.6. On the other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... setting aside the same. Considering the above facts, we hold that it is a fit case where the additional grounds of appeal raised by the Revenue deserves to be admitted. While, admitting the same, we proceed to adjudicate the same. 7. As mentioned earlier, the first issue related to the transaction with Hitler Moti Lal. In the seized documents, certain transactions involving Hitler Moti Lal was noted. The AO treated the figures of "Rs. 15" as "Rs. 15,000". The CIT(A) rather deciding the issue on merits, set aside the issue for fresh adjudication. This was a case where a view had to be taken as to whether Rs. 15 could be treated at Rs. 15,000. No more evidence or documents were required for adjudicating this issue. We, therefore, hold that instead of setting aside the issue, the CIT(A) himself could have considered the addition on merit. We, therefore, restore this issue to the file of the CIT(A) to decide on merit. In case, he needs further information, he could get it by way of remand report from the AO or by way of information from the assessee. 8. The second and third issue raised by additional ground related to the addition on account of undisclosed investment in the busines ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r have been ignored. The Revenue has made no claim that the addition made by AO should have been upheld. Thus, no prejudice is caused to the assessee if the CIT(A) adjudicate these issues on merits. These additional grounds raised by the Revenue are partly allowed. 12. Now, we will take up the original grounds of appeal raised by the Revenue. 12.1. In the first ground of appeal, the Revenue has challenged the deletion of Rs. 2,65,709 made by the AO on account of unexplained Jokhar a/c. On appeal, the CIT(A) allowed the claim of the assessee. The Revenue is in appeal before us against the findings of the CIT(A). 12.2. While the learned Departmental Representative supported the order of the AO, the learned counsel supported the order of the CIT(A). We find that the assessee has furnished explanation before the AO/CIT(A) to the effect that the amount impressed in the Jokhar a/c represented purchase and sale on approval basis. The copies of accounts of debtors, were filed along with the returns. Similarly, the list of sundry creditors of Rs. 2,74,876 was also filed along with the return. After debiting the sundry creditors of Rs. 9,113, the balance liability was provided in the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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