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Angadi Srinivasa Rao Versus ITO, Ward-1 (1) , Guntur

2017 (9) TMI 659 - ITAT VISAKHAPATNAM

Estimation of income - disallowance of expenses - addition in respect of inadequate personal expenses - Held that:- Assessee neither appeared before the A.O. nor filed any books of accounts or any details in respect of the business carried out by the assessee and also various expenses claimed by him. The A.O. on the basis of material available as per the return filed by the assessee, assessment is completed u/s 144 of the Act. Even the Ld. CIT(A) has given as many as opportunities to the assesse .....

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ssues has to go back to the A.O. to decide the case based on the books of accounts and relevant evidences. Therefore, we set aside the order passed by the Ld. CIT(A) and send it back to the A.O. to adjudicate this issue de-novo in accordance with law. - In so far addition made by the A.O. the A.O. has observed that, it is seen from the assessee’s balance sheet that the assessee is showing liability to the extent of ₹ 21,00,383/- as cash creditors in the name of assessee’s relatives and .....

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the issue may be remitted back to the A.O. for de-novo consideration. - I.T.A.No.322/Vizag/2012 - Dated:- 7-9-2017 - SHRI V. DURGA RAO, JUDICIAL MEMBER For The Appellant : Shri G.V.N. Hari, AR For The Respondent : Shri S.R.S. Narayan, DR ORDER PER V. DURGA RAO, Judicial Member: This appeal filed by the assessee is directed against order of the CIT(A), Guntur dated 24.11.2011 for the assessment year 2008-09. 2. Ground Nos.1,2 & 3 are not pressed and the same are dismissed as not pressed. Gro .....

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142(1) of the Income Tax Act, 1961 (hereinafter called as 'the Act') were issued to the assessee. The A.O. has also given sufficient opportunities to the assessee for hearing, however, the assessee has not appeared before the A.O. The assessee has not filed books of accounts and no evidence to support the return filed by him. Accordingly, A.O. has completed ex-parte assessment u/s 144 of the Act. In the assessment order, the A.O. has further observed that it is seen from the accounts cop .....

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nses claimed by the assessee, the A.O. has observed that the assessee has claimed various expenses of ₹ 24,38,455/-. In the absence of any evidence in support of the above expenditure, the expenditure considered to be on higher side, accordingly, he has disallowed 20% of the expenses claimed by the assessee, which works out to ₹ 4,87,691/- and same is added to the total income of the assessee. In so far as inadequate personal drawings is concerned, in the assessment order, the A.O. h .....

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ses out of income from unexplained sources, the drawings are reasonably fixed at ₹ 2 lakhs and the difference of ₹ 66,881/- is added to the total income of the assessee. 3. Assessee carried matter in appeal before the CIT(A). The Ld. CIT(A) posted the appeal for several times. No one appeared. Finally in response to the notice of hearing on 21.11.2011, the assessee filed a written submission along with letter requesting to dispose of the appeal on merits. The Ld. CIT(A) by considerin .....

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has only filed ledger account copies which would not meet the requirement; but evidences were required to be produced. With the above observation, CIT(A) confirmed the order of the A.O. 4. In so far as inadequate drawings are concerned, the A.O. has observed that the assessee resides in his own residence, expenses for food, medicines, dress, school fee, etc. for 4 persons, in my considered opinion, is small and inadequate. Having regard to the various factors mentioned above, I am of the opinio .....

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ed that once an estimation is made, no expenditure has to be disallowed as per the decision of the Hon ble jurisdictional high court in the case of Indwell Constructions Limited Vs. CIT (2012) 232 ITR 776 and submitted that the order passed by the CIT(A) by confirming the order of the A.O. in respect of disallowance of expenditure and inadequate self drawings is contrary to the decision of Hon ble jurisdictional High Court in the case of Indwell Constructed Limited Vs. CIT (supra) and submitted .....

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e assessee and also various expenses claimed by him. The A.O. on the basis of material available as per the return filed by the assessee, assessment is completed u/s 144 of the Act. Even the Ld. CIT(A) has given as many as opportunities to the assessee, however, the assessee has appeared on 22.11.2011 and filed a written submission requesting him to dispose of the appeal on merits. The Ld. CIT(A) in his order, categorically observed that the assessee has not filed any evidence except producing s .....

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