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2015 (12) TMI 1522

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..... this case. In view of the above, addition made on this issue is hereby ordered to be deleted. Interest under section 234B - Held that:- We find that as per sub section (3) of section 234 of the Act as it stood and applicable for the assessment year under consideration, the assessee is liable to pay the interest, for the period commencing on the day following the date of determination of total income under sub section (1) of section 143 or under section 143(3) as the case may be and ending on the date of reassessment or re-computation under section 147 or section 153A. On the amount by which the tax on the total income determined on the basis of the reassessment or re-computation exceeds the tax on the total income determined under sub .....

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..... s both dated 17.10.2012 of the Commissioner of Income Tax (Appeals) [hereinafter referred to as the CIT(A)]. Since the appeals are relating to the same assessee and the facts and issues involved therein are identical in nature, hence the same are taken together for disposal by this common order. First we take up the assessee s appeal for A.Y. 2009-10 bearing ITA No.7076/M/2012. ITA No.7076/M/2012 (for A.Y. 2009-10) 2. The assessee in this appeal has raised three effective issues. Vide ground No.1, the assessee has challenged the validity of the assessment order passed under section 153C of the Act. At the outset, the Ld. A.R. of the assessee has stated that as per instructions of his client, he does not press ground No.1. The ground N .....

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..... he discloser made by the assessee of ₹ 5,67,047/- is required to be given to the assessee. 6. We have gone through the records. We find that the assessee had offered the additional income on account of discrepancy in record in respect of certain payments made to certain parties on account of wages and labour charges. The AO has also made the disallowance finding discrepancies in the salary register. Hence, in our view, telescopic benefit is required to be given to the assessee in respect of the income offered on this account. Since the assessee has already declared additional income of ₹ 5,67,047/- in this respect, hence, in our view, no further disallowance of ₹ 1,79,732/- was warranted in this case. In view of the abo .....

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..... 43(3) of the Act. The Hon ble Karnataka Bombay High Court in Vijay Kumar Saboo, HUF Others. Vs. ACIT (supra) has also analyzed the above provision and has held that where in a case, the income is determined consequence to the filing of the return under section 143(1) or 143(3) and the income is increased in consequence of the reassessment proceedings, either under section 147 or under section 153A of the Act, the interest will be leviable as per the provisions of sub section (3) of section 234B of the Act. In view of the above, the AO is directed to calculate and compute the interest accordingly. 9. This appeal of the assessee is, thus, treated as partly allowed. 10. Now coming to the appeal of the assessee for A.Y. 2010-11 bearin .....

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..... /s. Shree Sudha Enterprises for the year showing drawings. He has further relied upon the balance sheet of the assessee as on 31.03.09 showing deposit of sales tax of ₹ 5000/- for Radhakrishna Distributors. 13. Considering the above submissions of the assessee and in view of the fact that the assessee has explained the source of entire deposits of more than ₹ 7 lakhs, we do not find any justification on the part of the lower authorities in disbelieving the source of above deposits of meager amount of ₹ 18,200/-. This ground of appeal is accordingly allowed and the addition of ₹ 18,200/- confirmed by the Ld. CIT(A) is hereby ordered to be deleted. 14. Vide ground Nos.2 3, the assessee has agitated the addition .....

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