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2015 (7) TMI 945 - ITAT LUCKNOW

2015 (7) TMI 945 - ITAT LUCKNOW - TMI - Validity of assessment order under section 144 - Held that:- Assessee could not substantiate the incorrectness in the action of the Assessing Officer for passing the assessment order under section 144 of the Act. We, however, have carefully perused the orders of the lower authorities and we find that the requisite information sought by the Assessing Officer were not furnished by the assessee before him, therefore, the action of the Assessing Officer was ap .....

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clusive of reversal of NPA provisions of ₹ 2,01,97,000/-initially made by the appellant in A.Y, 2004-2005 and 2006-2007 respectively without appreciating the fact that the profit to the extent of Rs,2,01,97,000/- was only the book entry and not the actual profit? - Held that:- The ld. CIT(A), re-examined the issue in detail and has finally held that the Assessing Officer is free to allow loss to the assessee after revising the assessed loss in assessment years 2004-05 and 2006-07 after car .....

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isions of NPA in earlier years, the said facts require a proper verification. We accordingly modify the order of the ld. CIT(A) and direct the Assessing Officer to examine the claim of the assessee in the light of earlier assessment orders relevant to the assessment years 2004-05 and 2006-07. - Decided in favour of assessee for statistical purposes.

Addition on account of possible leakage - Held that:- The assessee has claimed expenses at ₹ 12,32,067/- but it could not produce t .....

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38/- is proper for want of non-deduction of TDS under section 40(a)(ia) of the Act.

So far as deletion of addition of ₹ 23,37,707/- on account of production of form 15H is concerned, we raised a specific query from the ld. counsel for the assessee as to when it was filed and whether any comments were called from the Assessing Officer, as there is no specific finding of the ld. CIT(A), but the ld. counsel for the assessee could not furnish any explanation to the satisfaction of t .....

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purposes. - ITA No.55/LKW/2014,ITA No.68/LKW/2014 - Dated:- 24-7-2015 - Shri Sunil Kumar Yadav and Shri. A. K. Garodia, JJ. For the Petitioner : Shri. R. R. N. Shukla, D.R. For the Respondent : Shri. B. P. Yadav, Cost Accountant ORDER PER SUNIL KUMAR YADAV: These cross-appeals are preferred by the assessee as well as the Revenue against the order of the ld. CIT(A) pertaining to assessment year 2010-11. 2. Since common issues are involved in these appeals, we heard these appeals together and are .....

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rder u/s 144 of the I.T. Act, 1961. 2. The Ld. CIT(A) erred on facts and in law in dismissing the additional ground taken by the appellant that the profit of ₹ 2,86,25,894/-was inclusive of reversal of NPA provisions of ₹ 2,01,97,000/-initially made by the appellant in A.Y, 2004-2005 and 2006-2007 respectively without appreciating the fact that the profit to the extent of Rs,2,01,97,000/- was only the book entry and not the actual profit. 3. The Ld. CIT(A) erred on facts and in law i .....

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out of total addition of ₹ 3,53,36,493/- made by the Ld. Assessing Officer by invoking the provisions of section 40(a)(ia) of the I.T. Act, 1961 without appreciating the facts of the case of the appellant. 5. The Ld. CIT(A) erred on facts and in law in not providing the appellant reasonable and sufficient opportunity to have its say and to make compliances of the reasons being relied upon by him in making addition in the hands of the appellant. 4. Through ground No.1, the action of the Ass .....

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by the assessee before him, therefore, the action of the Assessing Officer was approved by the ld. CIT(A) and during the course of hearing of the appeal no defect was pointed out in the order of the ld. CIT(A). We accordingly confirm the order of the ld. CIT(A) approving the action of the Assessing Officer for completing the assessment under section 144 of the Act. 5. With regard to ground No.2, the ld. counsel for the assessee has submitted that the assessee s profit was inclusive of ₹ 1, .....

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and noticed that for assessment year 2004-05 the provisions for NPA and provision for evolve interest which were shown at ₹ 1,10,34,000/- and ₹ 3,46,10,000/- respectively were disallowed by the Assessing Officer and added back to his returned loss (as per his profit and loss account) of ₹ 47,25,78,21,082/- reducing the total loss to ₹ 16,13,821/-. It was further noticed by the ld. CIT(A) that the assessee has adjusted this figure amounting to ₹ 4,56,44,000/- (1,10, .....

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. For assessment year 2009-10, the assessee has credited ₹ 1,05,08,000/- under the head reversal for provision of overdue interest and ₹ 1,78,26,000/- under the head reversal for provision of NPA loan . The total of these come to ₹ 2,83,34,000/-. Thus there is a difference of ₹ 59,000/- less credited by the assessee under these heads in the profit and loss account. For assessment year 2008-09 in the profit and loss account an amount of ₹ 18,33,000/- is credited unde .....

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,39,000/- which was disallowed under the head provision of over dues interest and provision for NPA for assessment year 2006-07 . 7. It was further contented that the net profit of ₹ 2,86,25,894/- is inclusive of NPA reversal which has been already taxed in the hands of the assessee, was never mentioned by the assessee during the assessment proceedings. It was brought to the notice of the Assessing Officer vide application u/s 154 filed by the assessee on 27.02.2013. The NPA reversal has b .....

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the profit and loss account of the assessee and has not considered the reversal of NPA as such. 8. On account of objection raised by the Auditor to square up the provisions so made basically in light of disallowances of the same by the assessing authority, the assessee took these provisions again in its profit and loss account and now the balance amount of ₹ 3,89,89,000/- was taken into the profit and loss account in subsequent years. Because of the mistake on the part of the persons filin .....

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ially made in earlier years. 10. In support of his contention, the ld. counsel for the assessee has also filed the assessment orders for earlier years and during the course of hearing the ld. D.R. has also agreed that let the matter be restored to the Assessing Officer for verification of facts. 11. In the light of rival submissions, we are of the view that the Assessing Officer is required to assess proper income in the hands of the assessee. Therefore, the events of earlier years should be kep .....

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ccount and verification of bills and vouchers of the expenses during the assessment procedings, the Assessing Officer has made ad hoc addition of ₹ 2,46,413/- on account of possible leakage. 13. The ld. CIT(A) has reduced the same to ₹ 1,23,207/-. 14. The assessee is still aggrieved with the said ad hoc addition and has preferred an appeal before the Tribunal with the submission that the Assessing Officer has not pointed out any specific defect in the maintenance of the books of acco .....

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the rival submissions, we find that the assessee has claimed expenses at ₹ 12,32,067/- but it could not produce the supporting evidence before the Assessing Officer and the Assessing Officer has made disallowance of 20% of the total claim which was reduced by the ld. CIT(A) to 10%. Since the assessee could not produce evidence in support of the expenses, we find no infirmity in the ad hoc disallowance made by the ld. CIT(A). 16. Apropos ground No.4, it is noticed that the Assessing Office .....

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itten reply dated 24.7.2013 on which comments were called from the Assessing Officer and the Assessing Officer has made his comments vide letter dated 1.10.2013. The ld. CIT(A) examined the reply and counter-comments of the Assessing Officer and observed that the assessee is a banker and the amount of interest of ₹ 3,55,95,031/- pertaining to different accounts/depositors should be verified on the point deduction of TDS. He accordingly, in order to meet the ends of justice, asked the asses .....

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(A) that the assessee has received form 15H against various payment of interest of aggregating ₹ 23,37,702/-. Though the ld. CIT(A) has also recorded in his order that form 15H are placed on record, on which comments of the Assessing Officer was sought. 18. Being aggeed with the contentions of the assessee, the ld. CIT(A) has held that out of total payment of interest of ₹ 3,55,95,031/-, payments in excess of ₹ 10,000/- have been only of ₹ 25,96,245/- against which assess .....

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