TMI Blog2021 (4) TMI 343X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee before the CIT(A) were also forwarded to the AO for his comments although he has not given any comments. In my considered opinion, the audited balance sheet which was filed along with the return of income cannot be considered as an additional evidence. If the AO had given a cursory look to the audited balance sheet, he could have seen the differences. A bare perusal of the audited balance sheet shows that the cash in hand as on 31.03.2010 at ₹ 6,77,576.81 has gone down to ₹ 65,585.56 as on 31.03.2011. Similarly, other debts has gone down from ₹ 66,67,356.79 as on 31.03.2010 to ₹ 61,06,363.52 as on 31.03.2011. The fixed assets as on 31.03.2010 has gone down from ₹ 34,87,321.80 to ₹ 29,63,883.91 after depreciation of ₹ 6,44,091.61. I find, the AO, in the instant case has also not rejected the books by invoking the provisions of Section 145(1) and has simply gone for the addition on the basis of the information received from the Investigation Wing which was the reason for reopening of the case. Since the Ld. Counsel has demonstrated before me regarding the source of deposits in the bank account which includes the increase i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not be received by the assessee. Thus, there was no proper opportunity given by the AO to the assessee. 4. Based on the arguments advanced by the assessee, the ld. CIT(A) called for a remand report from the AO who objected to the admission of the additional evidences filed by the assessee. After considering the remand report of the AO and rejoinder of the assessee to such remand report, the ld. CIT(A) rejected the additional evidences filed before him and sustained the addition made by the AO. 5. So far as the addition on merit is concerned, the ld. CIT(A) dismissed the same by observing as under:- 4.7 Ground of appeal No. 8 refers to the addition made on account of the fact that the credit in the bank account was less than the sales declared by the appellant. The arguments put forth are that the other credits could be receipts from debtors, receiving back of loans and advances given earlier, receipt from the Directors of the appellant company etc. Firstly, the appellant has nowhere stated that the books of account were audited. The nature of business has not been specified even during appellate proceedings. One of the documents submitted refers to eight bank accounts, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me so made by the Ld. A.O. and upheld by Ld. CIT-Appeals is a hardship and as such be deleted. The appellant craves to add, alter, delete or amend any or entire of the grounds of appeal. 7. The Ld. Counsel for the assessee submitted that the issue in the instant case is the explanation of the sources of credits appearing in the regular bank accounts of the assessee. He submitted that the evidences furnished during the appellate proceedings before the CIT(A) were audited balance sheet and the tally data of the debtors and the bank details. These evidences are such which are in no case secondary evidences if the balance sheet is considered as public document and part of the original return of income. He submitted that whatever evidences were filed by the assessee at the appellate stage are relevant and goes to the root of the matter and may explain the source of cash deposits in the bank accounts of the assessee. This requires consideration and examination at the level of the ld. CIT(A). Therefore, the ld. CIT(A), instead of rejecting the evidences should have considered the same. 8. The Ld. Counsel for the assessee submitted that a perusal of the bank account would show ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Since the assessee could not substantiate before the CIT(A) regarding the non-submission of the details before the AO, therefore, he has rejected the application for admission of additional evidences and has dismissed the appeal filed by the assessee by giving justifiable reasons. He accordingly submitted that the grounds raised by the assessee should be dismissed. 11. I have considered the rival arguments made by both the sides, perused the orders of the AO and the CIT(A) and the paper book filed on behalf of the assessee. I have also considered the various decisions relied on by the Ld. Counsel for the assessee. I find, the AO, in the instant case, reopened the assessment on the ground that the assessee maintained five bank accounts and the total credits appearing in these accounts is ₹ 1,88,28,865/- whereas the assessee has declared a turnover of ₹ 1,80,76,482/- and, thus, the assessee has concealed the particulars of income amounting to ₹ 7,52,383/- and, during the course of assessment proceedings, there was non-compliance from the side of the assessee for which he made the above addition in the order passed u/s. 147/148/144 of the IT Act, 1961. I find, bef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11-12 and the various documents/details filed by the assessee before the CIT(A) were also forwarded to the AO for his comments although he has not given any comments. In my considered opinion, the audited balance sheet which was filed along with the return of income cannot be considered as an additional evidence. If the AO had given a cursory look to the audited balance sheet, he could have seen the differences. A bare perusal of the audited balance sheet shows that the cash in hand as on 31.03.2010 at ₹ 6,77,576.81 has gone down to ₹ 65,585.56 as on 31.03.2011. Similarly, other debts has gone down from ₹ 66,67,356.79 as on 31.03.2010 to ₹ 61,06,363.52 as on 31.03.2011. The fixed assets as on 31.03.2010 has gone down from ₹ 34,87,321.80 to ₹ 29,63,883.91 after depreciation of ₹ 6,44,091.61. I find, the AO, in the instant case has also not rejected the books by invoking the provisions of Section 145(1) and has simply gone for the addition on the basis of the information received from the Investigation Wing which was the reason for reopening of the case. Since the Ld. Counsel has demonstrated before me regarding the source of deposits in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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