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TMI Blog2019 (11) TMI 744X X X X Extracts X X X X X X X X Extracts X X X X ..... SI/Cir-2/BWN/2008-09, 68/XXXII/11-12/R&T/2(3)/BWN/Kol, 65/XXXII/11-12/Cir-2/ASL/R&T/Kol & 255/CIT(A)/ASL/ACIT/Cir-2/BWN/2011- 12; respectively involving proceedings u/s 147 r.w.s. in first AY and u/s 143(3) of the Income Tax Act, 1961; in short 'the Act' respectively. Heard both the parties. Case file(s) perused. 2. It emerges during the course of hearing that assessee's instant four cases involve identical / inter-connected issues. His multi folded substantive ground raised in all these assessment years challenge correctness of lower authorities action making various disallowance(s) / addition(s). Most prominent of the said disallowance(s) / addition(s) relate to alleged embezzlement of funds relating to ICIC bank loans followed by inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roceedings as under:- "To Sk. Abdul Sabir Golahat, Nimtala Masjid, P.O. Sripally, P.S. & Dist. Burdwan Pin 713103. Sub: Proposal for enhancement of income under the provisions of sec. 251(2) of the Income Tax Act, 1961 in relation to the appellate proceeding pending for the assessment year 2006-2007. Ref:- Appeal No.124/CIT(A)/ASL/Cir-2/BWN/08-09, for the Assessment Year 2006-2007. Sir, Please refer to the above. In connection with the appellate proceedings for the assessment year 2006- 2008,. I am of the considered opinion, that certain income needs to be enhanced within the scope of sec.251(1) of the I.T. Act, 1961 which are as per the following:- It is seen that you have received the following amounts for the respec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... action on the part of the undersigned is not permitted under the scheme of the IT Act, 1961. Your reply in writing should reach my office on or before 6.04.2014 positively. In case of any non compliance on your part on such date, it will be presumed that you have no objection to the proposed enhancement of income. Please note that no adjournment will be allowed in this case as the pending appellate proceeding needs to be finalized within the time frame given by the Hon'ble High Court at Calcutta." It is vehemently contended at the Revenue's behest that since the assessee had failed to re-pay the ICIC bank loan under the retail warehouse receipt based finance scheme, the impugned sum(s) have been rightly added as his income u/s 2( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of sec. 148 proceedings in AY 2006-07 in ITA No.89/Kol/2015. We therefore decline these two grounds as not pressed. 5. The assessee's next substantive ground in assessment year 2006-07 is that the CIT(A) has erred in law and on facts in restricting the Assessing Officer's action disallowing its expenditure of Rs.8,21,119/- to Rs.7,33,184/- only in the lower appellate proceedings. Learned departmental representative fails to rebut the clinching fact that the impugned addition is based on estimation only than any lack of nexus with the assessee's trading activity in various commodities. The fact also remains that the assessee has also not been able to prove the same by way of cogent supportive evidence. We therefore deem it appropriate to re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... age. We find no merit in Revenue's foregoing technical plea going by hon'ble apex court's landmark decision in National Thermal Power Corporation. Ltd. vs. Commissioner of Income-tax (1998) 229 ITR 383 (SC) considered in tribunal's special bench order in All Cargo Global Logistics Ltd. vs. DCIT (2012) 137 ITD 26 (Mum) that we can very well entertain such an additional ground in order to determine the correct tax liability of a taxpayer provided all the relevant facts are already on record. Going by the very analogy, we admit the assessee's instant additional ground. 9. Coming to merits of the issue of correctness of estimated disallowance regarding assessee's potato purchases amounting to Rs.47,53,38,737/-, there is no issue that both ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowance(s) / addition(s) of Rs. 2.45 lakh, Rs.633,000/-, Rs.30,514/- and Rs.316,269/- on account of capital investment of the partnership firm M/s Nataraj Rice Mill, fuel & lubricants expenses and depreciation, disallowance of Rs.29,014/- of donation of subscription and godown on account of nondeduction of TDS; respectively. Both the learned representatives submitted in unison since we have restore the impugned issues back to the Assessing Officer (supra) the instant issues may also follow suit since the same adjudicate afresh factual verification. We therefore accept all these remaining substantive ground for statistical purposes and leave it open for the Assessing Officer to adjudicate the same afresh after carrying out necessary factua ..... X X X X Extracts X X X X X X X X Extracts X X X X
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