9911796707
TMI Blog2019 (9) TMI 455X X X X Extracts X X X X X X X X Extracts X X X X ..... der. 2. Facts of the case, in brief, are that assessee is the proprietor of M/s. Jain Jawanmal Rakesh Kumar Bankers. A survey operation u/sec. 133A of the Act was conducted in the business premises of the assessee on 08/01/2013. The assessee has filed his return of income for the A.Y. 2012-13 by declaring total income of Rs. 5,68,970/-. Consequent to the survey, the assessee's case was reopened u/sec. 148 of the Act and after following due procedure, assessment was completed u/sec. 143(3) r.w.s. 147 of the Act on 30/09/2015. In the assessment order, the Assessing Officer has noted that during the year, the assessee maintained books of accounts on cash basis in respect of interest receipts. However, it is seen that in respect of payments, p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hereas for payments, followed mercantile system of accounting. The case of the assessee is that the payees themselves requested the assessee to retain the interest payments, therefore he followed mercantile system of accounting. The assessee has not given satisfactory explanation before the ld.CIT(A), therefore ld. CIT(A) confirmed the order of the Assessing Officer. Even before us, assessee has not given any explanation why he is following two different methods for receipts and payments. We have gone through the order of the ld.CIT(A) and find no error in it. The ld. CIT(A) has considered all the facts and circumstances and decided the issue. For the sake of convenience, the relevant portion of the order is extracted as under:- "6.3 I ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the business of pawn broking, and therefore, the receipt of interest is his primary source of income. The appellant himself has chosen the cash system of accounting for maintaining his books of accounts, and all the interest receipts are being accounted for on receipt basis. As against this, the appellant is claiming interest payments on mercantile basis, on the pretext that the payees themselves requested the appellant to retain the interest payments. This contention of the appellant is entirely baseless, and cannot be accepted. The payees are all relatives of the appellant, and the appellant's AR has himself stated that "paying them the interest and getting the same amount back as further loans would be unnecessary". This statement it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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