Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2018 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (7) TMI 2085 - HC - Income TaxAddition u/s 68 - HELD THAT:- CIT(A) observed that the AO in his remand report has only commented partially on certain matters and thereafter, invoking his co-terminus powers examined the relevant facts and related documentation having a bearing on the matter especially the nature of deposits in the bank accounts and payments towards purchase of chicken feed and chicken by the assessee. After detailed examination, the ld CIT(A) has accepted the submission of the assessee that out of cash deposits of ₹ 4,37,07,862 in his bank accounts, an amount of ₹ 3,40,35,960 represents sale of poultry products which has also been reported in the audited financial statements. The said finding of the ld CIT(A) remain uncontroverted before us and the same is hereby confirmed. Difference of opening cash and debtor balances - AR submitted that assessee was engaged in the business from last so many years and was regularly filing ITRs, the financials of year 2010-11 was duly audited by a Chartered Accountant, third party confirmation from the debtors and cash book was duly submitted and books of accounts for the preceding years was maintained and the income was reported u/s 44AD - HELD THAT:- As per auditor’s report, we find that the auditors have categorically stated that “this is the first year of audit, opening balance are taken as certified by the proprietor with due confirmation from the bank statement”. Given that, we are of the view that matter will require examination of the said contentions so raised by the ld AR and accordingly the matter to this limited extent is remanded back to the file of the AO. Rejection of books of accounts u/s 145(3) - HELD THAT:- This is the first year where the assessee has carried out the exercise of maintenance of formalized books of accounts and got them audited. At the same time, we find that there are adequate documentation to support the purchase and sales made during the year in terms of ledgers, invoices and purchase confirmations. Further, no specific defect has been highlighted by the ld CIT(A) in respect of other expenses claimed by the assessee. Given the peculiarity of the facts and circumstances of the case, we are of the view that the ld CIT(A) was not correct in rejection of books of accounts and estimating the net profits in hands of the assessee relating to the impunged assessment year. Book results and net profit so declared by the assessee is hereby accepted except for verification of opening balances of cash and debtors for which the matter is being setaside to the file of the AO. In the result, sole ground of revenue’s appeal is dismissed, ground no. 2 of assessee’s appeal is allowed for statistical purposes and ground no. 3 of the assessee’s appeal becomes infructuous in view of results declared as per books of accounts being accepted. Addition of agriculture income as income from other sources - HELD THAT:- During the course of hearing, the ld. AR submitted that the necessary evidence regarding agriculture income were never demanded by the either AO or by the ld. CIT(A). However, the same are being submitted now in form of copy of jamabandi and proof of agriculture income and the same may kindly be admitted. The ld DR fairly submitted that the matter may be remanded to the AO for verification. In light of the same, the evidence in support of agriculture income is admitted and the matter is remanded back to the file of the AO to examine the same a fresh after providing reasonable opportunity to the assessee. The ground is thus allowed for statistical purposes. Considering the interest income as income from other sources - HELD THAT:- From perusal of assessment order, we noted that the AO has brought to tax income from other sources as per return of income amounting to ₹ 90,256. However, there is no finding that said figures includes the figure of ₹ 48,231. Hence, the matter is remanded back to the file of the AO to examine the same and where it is found that the figure of ₹ 90,256 already includes the figure of ₹ 48,231, allow the necessary relief to the assessee as the same income cannot be brought to tax twice. In the result, the ground of appeal is allowed for statistical purposes Disallowance of deduction u/s 80C - AR submitted that evidence regarding investment eligible for deduction u/s 80C were never demanded by AO or ld. CIT(A) and the addition evidence regarding said investment in form of LIC receipt and tuition fees has now being submitted and the same may kindly be admitted - HELD THAT:- DR fairly submitted that the matter may be remanded to the AO for verification. In light of the same, the evidence in support of deduction under section 80C is admitted and the matter is remanded back to the file of the AO to examine the same a fresh after providing reasonable opportunity to the assessee. The ground is thus allowed for statistical purposes.
|