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2018 (12) TMI 1212 - AT - Income TaxAssessment u/s 153A - assessment as framed U/s 143(3) and within the time limit provided U/s 153B(1)(b) - Held that:- A notice was issued by the AO u/s 153A and the Tribunal has decided the issue by considering that the Assessing Officer initiated the proceedings U/s 153A of the Act whereas in the case in hand, the Assessing Officer issued a notice U/s 142(1) of the Act on 12/12/2014 because the assessee did not file any return of income U/s 139(1) of the Act. As apparent the facts in the case in hand are distinguishable and therefore, the decisions relied upon by the assessee will not help the case of the assessee. Accordingly, no substance or merits in the ground No. 1 of the assessee’s appeal, hence, the same is dismissed. Disallowance of interest - Held that:- Once the assessee has claimed the loss on account of interest then it is the primary onus of the assessee to prove and establish the allowability of the claim against the business income. To the extent of the interest which was paid on the fund used for investment, the same cannot be allowed against the business income. The assessee has expressed his inability to segregate the details, therefore, in the facts and circumstances of the case, we do not find any reason to interfere with the order of the CIT(A), hence, this ground of assessee’s appeal is dismissed. Addition in dairy business - N.P. determination - AO excluded the closing stock from the net profit declared by the assessee - Held that:- Once the assessee has declared net profit which is to be taken for the purpose of income tax then the exclusion of closing stock from the net profit is not permissible. Even otherwise while computing the net profit as per the principle of accounting standards, the opening and closing stock are very much part of the P&L account and cannot be excluded for the purpose of even estimating the income U/s 44AD of the Act. Once the assessee has declared net profit of more than 8% even after excluding the interest income of ₹ 1,475/- then no addition is called for. Therefore, the net profit declared by the assessee excluding the interest income is 8.44% then even applying the deeming provisions of presumptive income U/s 44AD of the Act, no addition is called for as the net profit declared by the assessee is more than 8% as provided U/s 44AD of the Act. Accordingly we delete the addition made by the Assessing Officer. Addition on account of unexplained investment in jewellery - Held that:- Neither the AO nor the ld. CIT(A) has considered the jewellery which was declared in the revised return of income and further the purchases made by the assessee from 16/5/2011 to 30/1/2013 as per the purchase bills produced by the assessee. CIT(A) has turndown this explanation on the ground that the copies of the purchase bills were not found in the file of the Assessing Officer, therefore, if this claim of the assessee is found to be correct then no addition of ₹ 15.00 lacs is called for. Hence, in the facts and circumstances of the case, we set aside this issue to the record of the Assessing Officer to verify these facts of declaring the jewellery in the revised return of income as well as purchases made by the assessee from 16/5/2011 to 30/1/2013 as well as the jewellery recorded in the books of account. If the claim of the assessee is found to be true then no addition on this account is required to be made.
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