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2021 (4) TMI 343 - AT - Income TaxReopening of assessment u/s 147 - assessee maintained five bank accounts and the total credits appearing in these accounts is ₹ 1,88,28,865/- whereas the assessee has declared a turnover of ₹ 1,80,76,482/- and, thus, the assessee has concealed the particulars of income amounting to ₹ 7,52,383/- and, during the course of assessment proceedings, there was non-compliance from the side of the assessee for which he made the above addition in the order passed u/s.147/148/144 - HELD THAT:- AO could not have ignored the audited balance sheet filed along with the return of income. As sufficient force in the argument of the Ld. Counsel that the deposits in the bank accounts stand fully explained and, in fact, the actual deposits in the bank accounts are much more than the amount mentioned by the AO. Considering the totality of the facts and considering the smallness of the amount in question,we donot think it proper to restore the issue back to the file of the lower authorities since the assessment year involved is A.Y. 2011-12 and the various documents/details filed by the assessee before the CIT(A) were also forwarded to the AO for his comments although he has not given any comments. In my considered opinion, the audited balance sheet which was filed along with the return of income cannot be considered as an additional evidence. If the AO had given a cursory look to the audited balance sheet, he could have seen the differences. A bare perusal of the audited balance sheet shows that the cash in hand as on 31.03.2010 at ₹ 6,77,576.81 has gone down to ₹ 65,585.56 as on 31.03.2011. Similarly, other debts has gone down from ₹ 66,67,356.79 as on 31.03.2010 to ₹ 61,06,363.52 as on 31.03.2011. The fixed assets as on 31.03.2010 has gone down from ₹ 34,87,321.80 to ₹ 29,63,883.91 after depreciation of ₹ 6,44,091.61. I find, the AO, in the instant case has also not rejected the books by invoking the provisions of Section 145(1) and has simply gone for the addition on the basis of the information received from the Investigation Wing which was the reason for reopening of the case. Since the Ld. Counsel has demonstrated before me regarding the source of deposits in the bank account which includes the increase in share capital to the tune of ₹ 43,37,700/- and the net sale proceeds and movement in current assets/current liabilities and the books of account were not rejected by invoking the provisions of section 145(1), therefore,set aside the order of the CIT(A) and direct the AO to delete the addition. The grounds raised by the assessee are accordingly allowed.
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