9911796707
TMI Blog2015 (2) TMI 771X X X X Extracts X X X X X X X X Extracts X X X X ..... tire service charges on installation and commencing of equipments would accrue to the Appellant immediately after completion of installation and commission without appreciating that the Appellant had a corresponding obligation to provide services during the period of the warranty ? ii. Whether on the fact and in the circumstances of the case the Tribunal was right in holding that once the addition under Section 69C has to be confirmed without appreciating that the First Appellate Authority has merely given a direction to the Assessing Officer to verify the probable expenditure that would have been incurred for earning the unexplained investment ? 2. The second substantial question of law admitted by this Court in relation to Section 69C - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture company with Electronics Corporation of Tamil Nadu Limited ( in short, ELCOT) holding shares in the appellant company. The assessee filed return of income on 22.10.1996 declaring total income of Rs. 30,50,272/-. The assessee also filed revised return of income on 12.1.1999 declaring income of Rs. 34,95,540/-. The Assessing Officer completed the assessment and made the following three additions: "i) Income of Electro Medical Maintenance Centre - Rs. 4,61,642/-; ii) Service Charges - Rs. 24,08,748/- and iii) Bank deposit in current account - Rs. 7,44,340/-." 6. While completing the assessment, with regard to the addition made under the head 'income of Electro Medical Maintenance Centre', the Assessing Officer found that after ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the authorised representative. On 19.03.99, Shri R.Sundararaman, F.C.A., and Shri Ramachandran, Director of the company attended with the books of accounts, ie.,ledger and bank book. Both of them confirmed that the above deposits in current account with I.O.B. has not been recorded in the trading receipts. They offered Rs. 7,44,340 as income for A.Y.1996-97. Shri Ramachandran, Director submitted letter dated 19.03.99 written in his own handwriting. This account has been operated by all three whole time directors. The above facts are confirmed by the authorised representative and the Director confirmed that the income of Rs. 7,44,340 has not been offered in the original return as well as return filed on 21st Jan. 1999. the same is added to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s properly accounted for in the assessment year 1997-98. 11. With regard to the last addition made towards deposits in the current account at Rs. 7,44,340/-, the submission of the assessee before the Commissioner of Income Tax (Appeals) was that the assessee had no objection in treating the deposits in the current account of IOB as unexplained, the same should be allowed as deduction towards unexplained expenses incurred the assessee. The Commissioner of Income Tax (Appeals) held that this plea was not taken by the assessee before the Assessing Officer. Hence the Commissioner of Income Tax (Appeals) remitted the matter to the Assessing Officer for determining the quantum of unexplained expenses related to earning unexplained deposit of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the order of the Tribunal upholding the order of the Assessing Officer, the assessee is before this Court. 17. It is seen from the order of the Tribunal that the Assessing Officer had made three additions to the income of the assessee, which was confirmed by the Tribunal. On the first issue, namely, addition of Rs. 4,61,642/-, the Tribunal upheld the order of the Assessing Officer primarily on the plea that the Authorised Representative of the assessee had agreed for the inclusion of income and therefore, the Commissioner of Income Tax (Appeals) was not correct in deleting the addition. 18. On the next issue relating to service charges of Rs. 24,08,748/-, the assessee claimed that they have received this amount from three customers r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d issue, the sum of Rs. 29,39,092/-, which is part of Rs. 24,08,748/-, which was omitted to be included in the return of income dated 16.11.1997, was offered as income in the assessment year 1997-98 by the assessee. 22. In such view of the matter, the first and second issues are remanded back to the Assessing Officer to verify and pass appropriate orders. 23. On the third issue relating to addition of Rs. 7,44,340/-, as has been clearly recorded by the Assessing Officer that this amount does not reflect as a trading receipt, but only as unexplained deposit coupled with the statement of Directors in the presence of Chartered Accountant that it was not offered as income of the said year, the Tribunal was justified in upholding the order of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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