TMI Blog2013 (6) TMI 546X X X X Extracts X X X X X X X X Extracts X X X X ..... see appellant in the grounds above would stand to nullity in so far as they stood corrected to the extent that their reconciliation would determine the excess income rendered by the assessee were reconciliation to the additions and disallowances made by the AO and complied with as per provisions of Section 44AB r.w.s. 145(1) and 145(2). This arithmetical accuracy lead to finalization of accounts which has not been challenged by the AO and the CIT(A) & thus inclined to hold that the survey operation impounding the CD under the provision of section 292C was to be addressed for accuracy under the accounting system accepted by him u/s 44AB. The additions so made by the AO are directed to be deleted - in favour of assessee. - ITA No.1494/Kol/2011 - - - Dated:- 14-5-2013 - Income Tax Appellate Tribunal - Kolkata 14 May, 2013 Sri K. K. Gupta, AM And Sri Mahavir Singh, JM,JJ. ITA No.1494/Kol/2011 Dipak Kamdar Versus D.C.I.T., Circle-37, Kolkata For the Appellant : Shri S.Jhajharia, FCA For the Respondent : Shri D.K.Rakshit, JCIT, Sr.DR ORDER Per Shri K.K.Gupta, AM. This appeal by the assessee raises the following grounds :- "1. That the order passe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s etc. were produced before the AO. In this case, a survey was conducted u/s 133A on 12.0.2007. During the course of the said survey proceedings certain documents were impounded marked as KK/1, KK/2 and KK/3. Some 18 bank accounts held in the name of the appellant as well as his family members and associates were inventorised. A back was taken of certain data stored in the computer system lying at the office premises of the appellant. This back up was kept in a CD and the said CD was impounded by the income tax officials on 12.09.2007 and marked as KKC/1. At the time of survey on 12.09.2007, the audit for the financial year 2006-07 was going on and the data in the computers were getting re-entered based on the source documents lying and available at the appellants' office premises on the date of survey. The auditors concluded the audit and gave their final report on the financial affairs of the appellant's proprietorship business named and styled K.Kumar Co. for the financial year 2006-07 on 19.10.2007. During the course of assessment proceedings the learned AO provided copies of impounded documents KK/2 and KK/3. The learned AO afforded an opportunity to go through the imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtain journal entries were pending and some data were in the process of getting re-entered based on the source document like bills, vouchers etc. which were available at the time of survey operations at the appellant's business premises. The appellant also produced books of accounts, bills, vouchers, bank statements, confirmations etc. to support the items appearing in the final accounts for the financial year 2006-07 and the return of income for the assessment year 2007-08. The learned AO asked to explain the nature of transactions and balance of Rs.12,329 as at 31.03.2007 in one savings bank account 2272 with Corporation Bank, Canning Street Branch, Calcutta - 700001 held in the name of the appellant. The appellant explained the nature of transactions and status of the alleged undisclosed savings bank account with Corporation Bank through letter dated 22.12.2009. The learned AO however disregarded the audited books of accounts, circumstantial and corroborative evidences, legal position and dis-believed all the explanations both - written and verbal - furnished by the appellant during the course of the assessment proceedings, added the sums stated in the paragraphs 8,9 and 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds of the assessee was to be specifically brought to tax from comparables and not uncomparables to the extent that the figures in the CD were the figures were to be subjected to audit and were corrected as per audit objections. When the ld. CIT(A) appreciated the facts that the telephone expenses disallowed were claimed as expenses in accordance with the bills paid for by the assesee and not because excess claim was made which has been subjected to audit. For this proposition he filed all the relevant invoices in the paper book along with the VAT returns which clearly indicate that the closing stock alone cannot be taken once the purchase difference either is held at the end of the year or has to be sold at as profit which emerges as gain which has not been addressed by the AO as the assessee has disclosed more income than as computed by him on the basis of the CD impounded at the time of survey. He prayed that all these additions do not have any basis and remain presumptions only which was confirmed in spite of acceptance of report u/s 44AB. The additions therefore require to be deleted. 4. The ld. DR supported the orders of the authorities below for his part of submissions. 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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