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Sri Balaram Debnath Versus ITO, Ward-4, Nadia

2015 (12) TMI 762 - ITAT KOLKATA

Addition on difference in the amount of credit notes - Held that:- A reconciliation statement was furnished by the assessee before the ld. CIT(A) explaining the said difference. When the said reconciliation was forwarded by the ld. CIT(A) to the AO, the latter did not make any adverse comments thereon and although this position was specifically pointed out by the assessee, the ld. CIT(A) still confirmed the addition made by the AO on this issue observing that there was no documentary evidence fi .....

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the reconciliation statement furnished by the assessee that the major difference, as explained by the assessee, was on account of difference in the years, in which some credit notes were accounted for by both the sides. Thus the addition made by the AO on this issue was not sustainable and the ld. CIT(A) is not justified to confirm the same without appreciating the reconciliation statement filed by the assessee explaining the difference in the amount of credit notes - Decided in favour of asses .....

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authority. The ld. CIT(A) however did not admit this relevant evidence on the ground that a photo copy of form no.15G was filed by the assessee and not the original. Unable to subscribe to the view taken by the ld. CIT(A) on this issue. At the time of hearing, the ld. Counsel for the assessee has filed a photo copy of the said form no.15G duly certified as a true copy and keeping in view the relevance of this documentary evidence, thus consider it fair and proper to restore this issue to the fi .....

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single status of the assessee living in the joint family leading a simple life were specifically pointed out by the assessee. It appears that the AO as well as ld. CIT(A), however, has overlooked all these relevant aspects and estimated the withdrawals of the assessee for personal and household expenses at ₹ 60,000/- without giving any sound or convincing basis whatsoever. I, therefore, find no justification in the addition made by the AO on this issue and confirmed by the ld. CIT(A) and d .....

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who is engaged in the business of dealing in cigarette and cloth under the name and style of his proprietary concern M/s. J.N. Traders and Jay Netai Bhander. The return of income for the year under consideration was filed by him on 31.10.2007 declaring total income of ₹ 2,51,520/-. During the course of assessment proceedings, it was noticed by the AO from the confirmation received from M/s. VST Industries Ltd., one of the suppliers of the assessee that credit notes totaling to ₹ 18, .....

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was prepared and furnished by the assessee explaining the said difference. According to AO, the said explanation however was not verifiable in the absence of supporting documentary evidence. He, therefore, treated the difference of ₹ 2,07,306/- as undisclosed income of the assessee and added the same to his total income. During the course of assessment proceedings, it was also noticed by the AO that no tax at source was deducted by the assessee from the interest of ₹ 1,08,000/- paid .....

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be low by the AO considering the status of the assessee. He, therefore, estimated the personal and household expenses of the assessee for the year under consideration at ₹ 60,000/- and added the difference of ₹ 29,500/- to the total income of the assessee on account of low withdrawals. Accordingly, the total income of the assessee was computed by the AO at ₹ 5,96,330/- in the assessment completed under section 143(3) vide an order dated 30.12.2009. 3. Against the order passed b .....

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Rs.16,46,019.41 Add: Advance payment to VST DSL Co.Pvt . Ltd. and shown in the books of account s for 06-07 A.Y. which has been adjusted by credit note by VST Industries Ltd. for 07-08 A.Y. as amalgamated with VST DSL Co. Pvt . Ltd. ₹ 1,43,832.65 Add: Claimed credit note receivable from the said company and shown in the books of accounts for the 06-07 A.Y. which has been adjusted by Credit note by VST Industries Ltd. for 07-08 A.Y. Rs. 1,27,154.50 Rs.18,18,177.56 Add : Credit note of ͅ .....

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t did not make any adverse comments thereon. Although this position was clearly pointed out by the assessee in the counter-comments offered before the ld. CIT(A) on the remand report of the AO, the ld. CIT(A) still proceeded to confirm the addition of ₹ 2,07,306/- made on account of difference in the amount of credit notes observing that there was no documentary evidence filed by the assessee in the form of claim made or confirmation from the company to support and substantiate the explana .....

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not find the photo copy of form 15G filed by the assessee as admissible evidence as the same was only a photo copy and there was no original copy filed by the assessee. Accordingly, he confirmed the disallowance made by the AO under section 40(a)(ia) on account of interest paid by the assessee to Shri S.Debnath. Similarly, the addition made by the AO on account of low withdrawals was also confirmed by the ld. CIT(A) observing that the estimation of withdrawals of the assessee as made by the AO @ .....

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ate principles. 2) For that on the facts and in the circumstances of the case, Ld. C.I.T. (Appeals) was not at all justified in confirming the addition of ₹ 2,07,306.00 & he should have considered the written submission of the appellant in this regard as well as remand report of the Ld. I.T.O. and the reasons adduced in confirming the additions of ₹ 2,07,306.00 are not at all convincing and as such the same should be deleted. 3) For that on the facts and in the circumstances of t .....

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amp; rejoinder given at the appellate stage & remand stage by the humble appellant. 5) For that both the Ld. C.I.T. (Appeals) and the Ld. LT.O. erred both in points of law and on facts. 6) For that the humble appellant craves leave to take additional grounds and amend grounds at the time of hearing. 4. I have heard the arguments of both the sides and perused the relevant material on record. As submitted by the ld. Counsel for the assessee. Ground nos. 1,5 and 6 raised in this appeal of the a .....

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ke any adverse comments thereon and although this position was specifically pointed out by the assessee, the ld. CIT(A) still confirmed the addition made by the AO on this issue observing that there was no documentary evidence filed by the assessee in order to enable verification of the reconciliation statement as pointed out by the AO. At the time of hearing before us, the ld. Counsel for the assessee has taken us through the copy of remand report submitted by the AO to the ld. CIT(A) to show t .....

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m of the view that the addition made by the AO on this issue was not sustainable and the ld. CIT(A) is not justified to confirm the same without appreciating the reconciliation statement filed by the assessee explaining the difference in the amount of credit notes. In that view of the matter, I delete the addition made by the AO and confirmed by the ld. CIT(A) on this issue and allow ground no.2 of the assessee s appeal. 6. As regards the issue involved in ground no.3 relating to the disallowanc .....

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