TMI Blog2010 (7) TMI 1035X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee on 20.1.2006. No incriminating material was found during the course of survey operation. However, a Sworn Statement was recorded from the assessee, a copy of which is available at Pages 1 8 of the Paper Book. On the basis of the sworn statement, the assessee filed revised return disclosing the investments made in two plots to the extent of ₹ 10.5 lakhs for the assessment year 2005-06. During the course of Assessment Proceedings the assessee agreed to pay an additional tax of ₹ 10 lakhs in order to avoid further litigation. The assessing officer accordingly assessed the income at ₹ 27,36,980/- after disallowing the expenditure to the extent of ₹ 89,750/-. However, the Administrative Commissioner in exerci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned representative, the additional income offered for the assessment year 2005-06 is ₹ 22.60 lakhs and most of the cash deposits in the bank account are preceded by cash withdrawals. The source of cash deposit was explained before the Administrative Commissioner by a letter dated 31.1.2008, a copy of which is available at pages 21 22 of the Paper Book. The learned representative further submitted that though during the course of survey operation, the only issue arises for consideration is investment of ₹ 10.5 lakhs in two plots, during the course of Assessment Proceedings, the assessee agreed to pay ₹ 10 lakhs towards tax. The assessing officer accepted the tax paid by the assessee and completed the assessment. The lea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et filed along with the revised return was to the extent of ₹ 3.14 lakhs. This was taken by the Administrative Commissioner as capital accretion. When the assessee filed revised balance sheet, according to the learned departmental representative, the increased capital has to be explained properly otherwise, the assessee has to pay tax. There was a difference of ₹ 3.14 lakhs with regard to the capital asset. According to the learned departmental representative, the Administrative Commissioner has rightly exercised his powers u/s 263 of the IT Act. 6. Referring to the cash deposit, the learned departmental representative submitted that the assessee has maintained two bank deposits and deposits were made to the extent of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed balance sheet, the assessee has shown Public Provident Fund of ₹ 3.50 lakhs. This was not shown in the original balance sheet. Therefore, as rightly submitted by the learned counsel, the original balance sheet confined only to the business asset. It does not taken into consideration the personal assets. In the revised balance sheet, the assessee has clubbed both personal as well as business assets. Therefore, there was a difference to the extent of ₹ 3.14 lakhs as found by the Administrative Commissioner. This difference was due to the personal assets which were included in the balance sheet. Therefore, in our opinion, the order of the assessing officer is not erroneous or prejudice to the interests of the Revenue. Accordingl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come originally offered and the additional income has to be considered as income for the entire gross profit. Therefore, we do not find any error in the order of the assessing officer. Moreover, there is no prejudice to the interests of the Revenue. 10. We have also carefully gone through the decision of this Tribunal in the case of Satyam Constructions (P) Ltd. (supra). In the case before this Tribunal, in Satyam Constructions (P) Ltd. (supra), as per the agreement and understanding with the department, the assessment was completed and the assessee has paid taxes. However, the Administrative Commissioner in exercise of his power u/s 263 of the IT Act found that there was no unabsorbed depreciation for the assessment year under considera ..... X X X X Extracts X X X X X X X X Extracts X X X X
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