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2016 (6) TMI 22 - ITAT DELHI

2016 (6) TMI 22 - ITAT DELHI - TMI - Addition on account of under valuation of closing stock - Held that:- The assessee was valuing the closing stock at cost or market price whichever was lower and this practice was followed consistently. In the instant case, it was claimed that in the preceding year and succeeding year, similar valuation has been accepted by the Deptt. and whenever the shares were sold, the profit earned in the trading was offered for taxation, the contention of the assessee wa .....

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the addition made by the AO and sustained by the ld. CIT(A) was not justified, accordingly the same is deleted - Decided in favour of assessee

Undisclosed deposits in bank - Held that:- It is an admitted fact that the assessees received a cheque of ₹ 1,25,000/- from Smt. Rekha Gupta and deposited the same in his bank account Smt. Rekha Gupta is proprietor of M/s. P.K.Gupta & Co. and maintained the cash book in her regular course of business. She deposited a sum of ₹ 1,25,0 .....

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ged the onus cast upon him to prove the identity of the depositor, her creditworthiness and genuineness of the transactions. Therefore, the addition made by the AO and sustained by the Ld. CIT(A) was not justified - Decided in favour of assessee

Addition on account of low household withdrawals - Held that:- In the present case, it is noticed that the assessee and his wife had withdrawn a sum of ₹ 1,23,730/- out of which ₹ 23730/- were on account of school fees of the child .....

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ided in favour of assessee - ITA No. 721/Del./2016 - Dated:- 24-5-2016 - Sh. N. K. Saini, AM And Sh. Kuldip Singh, JM For the Appellant : Sh. R.K.Singhal, CA For the Respondent : Sh. K.K.Jaiswal, DR ORDER Per N. K. Saini, A. M. This is an appeal by the Assessee against the order dated 17/12/2015 of CIT(A)-19, New Delhi. Following grounds has been raised in this appeal : 1. That vide order dated 17.12.2015 the Ld. Commissioner of Income Tax (Appeals)-19 has erred in fact and law by partly dismiss .....

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luation of closing stock. 3. That vide order dated 17.12.2015 the Ld. Commissioner of Income Tax (Appeals)-19 has erred in fact and law by holding that Ld. Assessing Officer has correctly made the addition of an amount of ₹ 125000/- received from Rekha Gupta. That in fact and circumstances of the case the assessee has duly discharged the onus casted upon him to prove the identity, genuineness and creditworthiness of Rekha Gupta as provided under section 68 of the Income Tax Act, 1961 and f .....

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o consideration the facts and the documents submitted by the assessee during the course of the assessment and the appeal proceedings. 6. The assessee craves leave of this Hon ble Tribunal to add to or amend the aforesaid grounds before disposal of the appeal. 2. Ground no. 1, 5 and 6 are general in nature so do not require any comments on our part. 3. Vide ground no. 2 grievance of the assessee relates to the confirmation of addition of ₹ 93,206/- made by the AO on account of under valuati .....

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at the shares were appearing in the Demat statement as on 31/3/2008 therefore it was conclusively proved that the assessee was the owner of such shares but he had not shown any value thereof. The value of those shares was shown in the opening stock by the assessee as under : Name of scrip Qty(nos.) Value(Rs.) Fourth Gen Info 2000 1,780/- Goyal Associates 5000 3,200/- Numero Uno 950 4,541/- S M Dychem 500 5,435/- Somani Cement 2000 11,260/- Western Industries 14,500 66,990/- Total 93,206/- The AO .....

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f. 6. The Ld. CIT(A) after considering the submission of the assessee observed that it was not necessary that each and every script should have been traded on the last day of the financial year and if the scrip had not been traded for few days or may be months then same is required to be valued at the last traded price and not at nil. He therefore confirmed the addition made by the AO. 7. Now the assessee is in appeal. The ld Counsel for the assessee reiterated the submissions made before the au .....

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t price and as the market price was nil, no value was taken in respect of the said closing stock. In his rival submissions, the ld. DR supported the impugned order passed by the Ld. CIT(A). 7. We have considered the submissions of both the parties and carefully gone through the material available on the record. In the present case it is an admitted fact that the assessee was valuing the closing stock at cost or market price whichever was lower and this practice was followed consistently. In the .....

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rd. It was also not rebutted by the department that whenever the shares were sold the profit earned on the said transaction was offered for taxation and accepted by the Deptt. We, therefore, by considering the totality of the facts, are of the view that the addition made by the AO and sustained by the ld. CIT(A) was not justified, accordingly the same is deleted. 8. The next issue vide ground no. 3 relates to the sustenance of addition of ₹ 1,25,000/- received from Smt. Rekha Gupta. The fa .....

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ome of the assessee. 9. Being aggrieved assessee carried the matter to the ld. CIT(A) and submitted that the confirmation and copy of the Income-tax return was furnished in support of the claim, however, the AO treated the same as unexplained because the lender was the wife of the assessee. 10. The ld. CIT(A) after considering the submission of the assessee observed that the assessee could not explain the source of cash deposit in the bank neither in the assessment proceeding nor during the cour .....

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nt wherein the cheque of ₹ 1,25,000/- received by the assessee was duly credited a reference was made to page no. 40 to 44 and 54-55 of the assessee s paper book which are the copies of bank statement of assessee and of M/s. P.K. Gupta & Co. (proprietor Smt. Rekha Gupta) respectively. It was further submitted that the assessee proved the identity of the lender, her creditworthiness and genuineness of transaction, therefore, the addition sustained by the ld. CIT(A) was not justified. Th .....

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ee s paper book. In his rival submissions, the Ld. DR supported the orders of the authorities below. 12. We have considered the submissions of both the parties and carefully gone through the material available on the record. In the instant case, it is an admitted fact that the assessees received a cheque of ₹ 1,25,000/- from Smt. Rekha Gupta and deposited the same in his bank account Smt. Rekha Gupta is proprietor of M/s. P.K.Gupta & Co. and maintained the cash book in her regular cour .....

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narrated facts, it is clear that the assessee discharged the onus cast upon him to prove the identity of the depositor, her creditworthiness and genuineness of the transactions. Therefore, the addition made by the AO and sustained by the Ld. CIT(A) was not justified, accordingly the same is deleted. 13. The last issue vide ground no. 4 relates to the sustenance of addition of ₹ 1,50,000/- on account of low household withdrawals. The facts related to this issue in brief are that the AO duri .....

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