9911796707
TMI Blog2021 (10) TMI 735X X X X Extracts X X X X X X X X Extracts X X X X ..... l: "i. The Ld. CIT(A), Hyderabad, erred in law and on facts, in not appreciating that the appellant had not been maintaining any regular books of accounts and the alleged balance sheet as on 31.03.2016 was drawn up by the assessee, considering the assets and liabilities available as on 01.4.2015 and 31.3.2016, without any supporting evidences provided for the alleged claim. ii. The Ld. CIT(A), Hyderabad, erred in law and on facts, in not appreciating that the assessee in order to arrive at the stock as on 31.3.2015, adopted the figure of stock available as in F.Y. 2004-05 and the fact that a survey u/s. 133A was conducted on 14.7.2004 in the business premises of the assessee and nay such alleged working over the subsequent years cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me to the Revenue's twin substantive grievances herein seeking to reverse the CIT(A)'s findings admitting the assessee's agricultural income of Rs. 26 lakhs without filing the revised return along with un-explained stock of Rs. 4,62,87,257/-. The CIT(A)'s relevant detailed discussion to this effect reads as under: "4.3 The above additional evidence/submissions were forwarded vide letter dated 02-08-2019, calling for a remand report from the Assessing Officer and the Assessing Officer vide his letter dated 25-09-2019 forwarded the remand report through Addl. CIT, Range-15, Hyderabad. The contents of the report are as under: "Please refer to the above. 2. The ld. CIT(A) vide letter cited above forwarded the addition evid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resh capital during the year under consideration. 7. During the course of remand report proceedings, with regard to the capital shown at Rs. 22,43,550/-, the assessee submitted that the amount shown as capital at Rs. 22,43,550/- is an inadvertent mistake crept in while uploading the return of income for the A.Y. 2015-16. It is nothing but a loss derived during the year from F 86 O. It has shown at column 38 of the return of income filed for the A.Y. 2015-16. 7.1 The submission of the assessee is verified from the return of income and found correct. Therefore, the ld. CIT(A) is requested to consider the issue on merits. 8. With regard to the additional capital introduced during the year of Rs. 42,51,000/- for the year 31.3.2016, Rs. 12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that as and when there is sale of any article, immediately the same weight of ornament will be replaced with new one. Therefore, the quantity of the stock will remain the same. Only there is a fluctuation in the rate, which will be booked as gross profit/gross loss to the profit and loss account. To arrive the opening balance of the capital, the assessee has followed the principle capital = assets - liabilities. 9. With regard to the opening balance of capital of Rs. 5,31,23,790/- for the A.Y. 2016-17, the assessee submitted that the assessee has not maintained any books of accounts upto the assessment year 2015-16. When there were no final accounts, the balance sheet has to be prepared by considering the assets and liabilities available ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the documentary evidence. Therefore, the ld. CIT(A) is requested to decide the issue on merits. " 4.4. The copy of the remand report submitted by the assessing officer was forwarded to the appellant to submit the explanation vide letter dated 08-11-2019. In response to the remand report, the AR of the appellant vide letter dated 15-11-2019 stated as under: "The only issue in this appeal is with regard to the addition of Rs. 4,62,87,257/- on account of additional capital. According to the Assessing Officer, the opening capital admitted for the year is not properly explained. The Assessing Officer considered the market value of 15 kg of gold available during Financial year 2004-05 and added the incomes received and arrived at the availab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt, therefore, requests the Hon'ble Commissioner of Income Tax (Appeals) to kindly allow the appeal as prayed for." 4.5 I have considered the submissions of the appellant, findings of the Assessing Officer in the assessment order and remand report carefully. The assessing officer after making detailed enquiry during the remand proceedings accepted the claim of the appellant that there was a mistake occurred at the time of filing return of income while uploading the entries. The assessing officer accepted the working given by the appellant considering the stock available as on 14-07-2004 and the returns of income filed from A.Y. 2005-06 to 2016-17. The assessing officer did not contradict the submissions made by the appellant in the re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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