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2014 (1) TMI 1432 - AT - Income TaxSustainability of the assessment made by the Assessing Officer u/s 144 of the Income-tax Act instead of section 143(3) of the Act – Held that:- The assessee has failed to comply with all the terms of the notice issued u/s 143(1) and 143(2) of the Act - All the queries raised by the Assessing Officer were not duly complied with by the assessee till the last date of hearing - The order of the lower authorities for making the assessment u/s 144 of the Act sustained. Sustainability of Addition u/s 69 of the Act – Addition made by AO u/s 68 of the Act – Unexplained cash credits – Held that:- Once the credits appeared in the bank account of the assessee it was on the assessee to explain the source of these credits - The assessee cannot be granted relief only on the basis that these may be refund of the securities that were pledged with the Nagar Nigam, Meerut time to time at the time of contracts assigned to the assessee - Since the assessee has not given any reasonable explanation with regard to credit entries in its bank account – thus, the order of the CIT (A) upheld with respect to these two credit entries treating as unexplained and sustain the addition. Disallowance made u/s 144 and 184(v) of the Act - Salary paid to partners – Held that:- The Assessing Officer made the addition by disallowing the amount of salary paid to the partners to cover up the possible leakages of revenue and for violation of provisions of section 44AA of the Act - The assessee’s case was not covered by the provisions of section 44AD of the Act, hence Assessing Officer held that no deduction allowed to partner’s salary from the estimated net profit @ 8% of the receipts - where the assessment has been made u/s 144 of the Act for the failure mentioned without section then no deduction by way of any payment of salary by the firm to any partner is allowable in computing the total income chargeable under the head “Profits and gains of business and profession” - The clause starts with the non-obstante clause notwithstanding anything contained in any other provision of the Act” – thus, there was no merits in the assessee’s appeal – Decided against Assessee. Interest u/s 234A, 234B,234C and 234D of the Act – Held that:- The decision in CIT vs. Anjum M.H. Ghaswala [2001 (10) TMI 4 - SUPREME Court] followed - the charging of interest is mandatory – thus, no relief can be granted on this ground also – Decided against Assessee.
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