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2015 (8) TMI 314 - ITAT MUMBAI

2015 (8) TMI 314 - ITAT MUMBAI - TMI - Cash deposits found in the Bank account assessed under section 68 - Held that:- The assessee claims to have maintained regular books and further claimed that sufficient cash balance was available in the books. However, we notice that the tax authorities have made the impugned addition without considering the explanation of the assessee as well as the books of accounts maintained by the assessee, which we consider to be not proper. Accordingly, we are of the .....

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uting book profit under section 115JB of the Act by adding Capital loss - Held that:- The assessing officer has proceeded to compute the Book Profit u/s 115JB of the Act against the provisions of the Act. It is well settled proposition that the provision of sec. 115JB is a complete code by itself and hence the book profit should be computed strictly in accordance with the provisions contained therein. The net profit disclosed in the Profit and Loss account prepared in accordance with the Compani .....

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normal provisions of the Act, as the starting point, which is legally not correct. Accordingly, the Ld CIT(A) was not justified in confirming the same. Accordingly, we set aside the order of Ld CIT(A) on this issue also and direct the assessing officer to compute the book profit strictly in accordance with the provisions of sec. 115JB of the Act, as discussed above.- Decided in favour of assessee for statistical purposes. - ITA No. 6753/Mum/2013 - Dated:- 1-5-2015 - B. R. Baskaran, AM And Amit .....

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es and perused the record. The assessee company is engaged in the business of manufacture and sale of jewellery. The original assessment for the year under consideration was completed under section 143(3) on 30.10.2009 and it was set aside by the Commissioner of Income Tax under section 263 of the Act. Consequently, the AO passed the impugned assessment order. 3. The first issue relates to the addition made u/s 68 of the Act towards unexplained bank deposits. The AO received AIR information abou .....

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reduced the same to ₹ 16.00 lakhs. 4. The ld.AR submitted that the assessee has maintained proper books of account and the cash withdrawals and deposits made from/into the bank account were duly reflected therein. He further submitted that the assessee had held sufficient cash balance in the cash book and the same was deposited in the bank account. He further submitted that the assessee did not have negative balance on any of the dates. Accordingly, he submitted that the source for making .....

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ition to the extent of ₹ 16 lakhs. 6. We heard the parties on this issue and perused the cord. In the paper book, the assessee has furnished relevant extract of cash book showing the deposits and withdrawals. According to the said workings, the assessee was having a cash balance of ₹ 16.45 lakhs as on 1.4.2006 and has carried out an average cash balance of about ₹ 19 lakhs from 1.4.2006 to 21.8.2006. The cash balance available as on 21.8.2006 was ₹ 17.56 lakhs. According .....

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fter hearing both the parties and on perusal of the finding given in the impugned orders and the material placed on record before us, we find that the assessee has maintained regular cash book and all its account are audited. The Ld.CIT(A) has analyzed each and every deposits made by the assessee in the bank account from the withdrawals made by the assessee from the bank and the cash available in the cash book. The assessee has also shown sufficient cash in hand in the balance sheet of the earli .....

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lar books and further claimed that sufficient cash balance was available in the books. However, we notice that the tax authorities have made the impugned addition without considering the explanation of the assessee as well as the books of accounts maintained by the assessee, which we consider to be not proper. Accordingly, we are of the view that this issue requires consideration de nova by considering the books of accounts and explanations of the assessee. Accordingly, we set aside the order of .....

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ion of income initially filed by the assessee was revised by the assessee on noticing certain mistakes. Since computation of income was revised, the AO took the view that there are defects in the books of account and accordingly came to the conclusion that the AO was entitled to make adjustments to arrive at correct book profit under section 115JB of the Act. Accordingly, the AO proceeded to compute the book profit under section 115JB of the Act in the following manner: a) The AO computed the to .....

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t and loss account Add: Depreciation as company Act Loss on sale of Walkeshwar flat Less : Depreciation allowable at IT ₹ 21,962 Profit on sale of Vasai factory ₹ 9,49,377 Add: Un-explained cash deposited in the bank account Rs.39,92,529 Rs.29,667 ₹ 2,93,45,467 ₹ 3,33,37,996 Rs.971339 ₹ 3,23,66,657 Rs.16,60,000 ₹ 3,40,26,657 Income from capital gain Short term capital gain on sale of Walkeshwar flat ₹ 10,47,156 Vasai factory ₹ 9,87,853 Less : Set-o .....

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