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2015 (1) TMI 306

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..... on, made solely on the basis of AIR information, especially in the absence of full details of parties and when the professional receipts declared by the assessee far exceeds than the amount mentioned in the AIR information, is not sustainable in the eyes of law. - If the assessee denies that he is in receipt of income from a particular source, it is for the AO to prove that the assessee has received income as the assessee cannot prove the negative. Reliance can also be placed on the decision of Mumbai Bench of Tribunal in the case of Shri S. Ganesh vs. ACIT" in [2010 (12) TMI 851 - ITAT, Mumbai] wherein the Tribunal has held that in the absence of any material brought by the revenue authorities that the assessee has received amount more tha .....

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..... ts in brief are that the Assessing Officer (hereinafter referred to as the AO) noted that the AIR information showed professional receipts of ₹ 34,49,43,172/- by the assessee which were required to be reconciled with the books of accounts. The assessee reconciled major portion of the amount but could not reconcile the amount of ₹ 2,32,75,363/-. It was stated by the assessee that these receipts were not received by the assessee. However, the AO observed that since the assessee had failed to reconcile the above stated receipts, he treated the same as concealed income of the assessee and added the same to the total income of the assessee. 4. During the appellate proceedings before the ld. CIT(A), the assessee filed some addition .....

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..... , the assessee had reconciled the professional receipts to the extent of ₹ 37,70,09,317/- before the AO. Further, during the appellate proceedings before the ld. CIT(A), the assessee had reconciled a sum of ₹ 74 lakh. In the AIR information the full details of the parties were not mentioned and as such it was not possible for the assessee to produce further reconciliation. On the other hand, the ld. D.R. has relied upon the findings of the lower authorities. 6. We have considered the rival contentions of the ld. representatives of the parties. It is an undisputed fact on the file that the professional fees shown by the assessee in its P L account far exceeds than the amount shown in the AIR information. Even the .....

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..... professional fees which has been declared by him in the P L account and when the professional income declared by the assessee far exceeds the professional fees shown in the AIR information, then additions solely based on the AIR information are not sustainable. 7. In view of our above observations and in the facts and circumstances of the case, the additions made by the Revenue solely based on the AIR information are not sustainable and the same are hereby ordered to be deleted. ITA No. 437/M/2013 (Assessment Year: 2009-10): 8. In this case, receipts shown as per AIR information was ₹ 27,57,07,136/- whereas receipts disclosed in the P L account and offered for tax was ₹ 34,80,07,270/- which was higher than the rece .....

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