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Soumya Bhattacharya, Kolkata Versus Income Tax Officer, Ward-55 (1) , Kolkata

2015 (6) TMI 880 - ITAT KOLKATA

Rejection of revised books of account u/s 145(3) - AO did not make an Ex-parte assessment or an estimated assessment but added amounts under section 69,69A,69B69C of the I.T.Act 1961 taking the figure from revised accounts - Held that:- The assesse has submitted the revised balance sheet and explanations to the differences and the balance sheet filed along with the return of income. But no defect has been pointed by the AO. Under such circumstances and facts of the case AO is not justified in in .....

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f section 145(3) - Decided in favour of assessee.

Addition on gifts received u/s 69 from mother-in-law and from father - Held that:- The finding of the AO and the ld. CIT(A) that there was no drawing during the five days prior to the date of gift and mere cash withdrawal by the donor long back i.e. 120 days cannot make the act probable. Such reasonings by both the authorities below cannot convert the facts of genuineness and creditworthiness of the transactions. In such circumstances .....

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e and the reconciliation and prayed to examine the differences between the revised balance sheet and audited balance sheet by us. Prima facie as appears from the order of ld. CIT(A) the assessee has stated to have reconciled the differences but the same has neither been examined by the AO in the right perspective nor by the ld. CIT(A). It will be in the interest of justice if it is set aside the matter to the file of AO, who will examine the issue in the right perspective being the differences b .....

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rmity in the order of ld. CIT(A), who has rightly confirmed the action of AO. - Decided against assessee.

Additions in respect of entire chamber maintenance, printing and stationery, books and periodicals , electricity expenses and miscellaneous expenses - Held that:- As per the report of the AO which has not been rebutted by the ld. AR that assessee himself has admitted vide his submission dated 14.12.2010 which states that he has made a chamber at his ancestral home but rarely get t .....

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ta Shankar Roy, Adv. For the Respondent : Smt Ranu Biswas, JCIT ORDER Per: B P Jain, AM. This appeal of the assessee arises out of the order of ld.CIT(A)-XXXVI, Kolkata dated 17.09.2012 for Assessment Year 2008-09. 2. The assessee has raised the following grounds of appeal : "1. The Commissioner of Income Tax (Appeals) erred in upholding the order of the Income Tax Officer rejecting the assessee s revised books of account under section 145(3) of the Income Tax Act 1961 merely on the ground .....

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Tax (Appeals) erred in upholding the order of the Income Tax Officer by not accepting the gift of ₹ 60,000 received from Father and making an addition of the said amount under section 69 of the Income Tax Act, 1961 as undisclosed. 4. The Commissioner of Income Tax (Appeals) erred in upholding the order of the Income Tax Officer by adding a part of the alleged difference in capital i.e. ₹ 11,20,339 as undisclosed investment of the assessee under section 69 of the Income Tax Act. 5. T .....

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the total income. The Learned CIT(A) ought to have allowed these legitimate expenditures as a deduction under section 37(1) as they are expended wholly and exclusively for the purpose of the profession carried on by the appellant." 3. The brief facts of the case are that the assessee is a medical practitioner by profession. The books of account of the assessee are audited. Since the professional receipts during the financial year ending 31st March, 2008 exceeded ₹ 10,00,000/- the AO .....

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25687/-Addition ₹ 5802046/- Closing ₹ 6127733/- P.O.MIS A/c 9811651Rs.300000/-NilRs.300000/Rs.300000/-Rs.300000/- Rs.600000/- Advance for flatRs.1721000/Rs.2056371/-Rs.37,77,371/-Rs.1721000/-Rs.2963431/- 46,84,453/- Furn. & FixtureRs.58,950/-NilRs.53,055/-Rs.58,950/-Rs/.1,64,233/- Rs.2,17,288/- Several other discrepancies were also noted by the AO and assessee was show caused to explain the said discrepancy in the books of account. The assessee made written submissions and submit .....

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en pointed by the AO. Under such circumstances and facts of the case AO is not justified in invoking the provision of section 145(3) of the Act by simply calculating the differences between the revised balance sheet and the balance sheet in the audited accounts attached with the return of income and adding the same to the income of assessee. Therefore under such circumstances of the case this action of the AO for rejecting the books of account only on account of computation difference between th .....

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avit of Shri Sachindra Mohan Bhattacharya, the father of assessee and written submissions submitted along with the affidavit and the bank statements. The AO not being satisfied with the genuineness and creditworthiness of the transaction added the same to the income of assessee vide page 4 of his order.5.1. Before the ld. CIT(A) the assessee submitted the explanation and the documents which were sent to the AO for report which was obtained. Accordingly after considering these submissions of the .....

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the bank pass book and details of cash withdrawn which are available in the paper book. The assessee has submitted the explanation of availability of cash and therefore there is no question on the creditworthiness or identity or genuineness of the transactions. The finding of the AO and the ld. CIT(A) that there was no drawing during the five days prior to the date of gift and mere cash withdrawal by the donor long back i.e. 120 days cannot make the act probable. Such reasonings by both the aut .....

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therefore, order of the ld. CIT(A) is reversed. Ground No.3 of the assessee is allowed. 8. As regards ground No.4 AO made addition of ₹ 11,20,339/- u/s 69 of the I.T.Act being undisclosed investment of the assessee due to difference in capital arising out of audit and revised balance sheet. The ld. CIT(A) confirmed the action of AO. 9. We have heard the rival contentions and perused the facts of the case. We find that the assessee has submitted the revised balance sheet during the course .....

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ice if it is set aside the matter to the file of AO, who will examine the issue in the right perspective being the differences between the revised balance sheet and the audited balance sheet and if the explanation is found satisfactory the addition may be deleted. The assessee may be afforded adequate opportunity of being heard. The assessee shall cooperate in the assessment proceedings and AO is directed to act accordingly. Thus ground no.4 of the assessee is allowed for statistical purposes. 1 .....

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