TaxTMI 
TaxTMI 
2022 (3) TMI 135
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....the Act. 2. The issue raised in ground no. 1 by the revenue is against the deletion of disallowance of Rs. 14,55,585/- by CIT(A) as made by the AO towards depreciation by ignoring the fact that assessee has not filed any appeal against the order passed u/s 143(1) as well as against the assessment framed u/s 143(3) and thus the right of the assessee got forfeited. 3. The facts in brief are that the assessee filed the return of income on 26.09.2010 declaring income of Rs. 3,96,310/- which was wrongly sated by the AO in the assessment order as Rs. 18,51,900/-. The return of the assessee was processed u/s 143(1) of the Act and income as per the intimation u/s 143(1) under the head business or Profession was taken at Rs. 18,51,900/-. This has ....
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....me and, therefore, the income u/s 143(3) i.e. Rs. 20,01,900/- cannot be accepted. The Ld. CIT(A) noted that the assessment u/s 143(3) pursuant to section 263 of the Act is in continuation to the assessment completed earlier and cannot be taken in isolation. The Ld. CIT(A) also observed the said amount of Rs. 18,51,900/- is arising out of processing of return u/s 143(1) which has wrongly been taken without discussing or examining as to how this has happened. The Ld. CIT(A) also observed that the difference between the returned income and income assessed u/s 143(1) has resulted from the denial of claim of depreciation amounting to Rs. 14,55,585/- in the order passed u/s 143(1) of the Act which was adopted by the AO while passing the order. Th....
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....ue raised in ground no. 2 is against the deleting the addition of Rs. 60,54,990/- by CIT(A) as made by the AO on account of unexplained revenue receipts. 6. The facts in brief are that the AO during the course of assessment proceedings found that the assessee has introduced cash out of undisclosed source of income in the guise of business income, the AO compiled the details of cash from the reply received to notice issued u/s 133(6) of the Act at the time of original assessment and also in the set aside assessment as per the details given hereunder: "Revenue as per audited Balance Sheet Rs. 3,35,32,600/- Less: Reported by HCC Nil RW Division, Jaleswar 58,78,309/- Coal Mines 3,00,202/....
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....e that the appellant has not booked any revenues for HCC during the relevant year but offered the receipt as revenues during the year which is not in accordance with the accounting and accrual principles even though if there is any dispute or uncertainty in respect of work done and reliability of revenues which ought to have been booked in the year of accrual. Be that as it may the revenues as reported on receipt cannot be treated as inadmissible and hence the quantum of revenues reported by the appellant in respect of HCC is accepted together with that of Coal mines with identical facts wherein the appellant has reported an amount of Rs. 3,78,402/-. Further, in case of HCC Ltd., the party itself had acknowledged that certain amount of work....
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.... inference. In the instant case though the revenues have been submitted but the element of suppression of profit cannot be ruled out and hence it is found appropriate that an amount of 8% of Rs. 15,96,701/- amounting to Rs. 1,27,736/- is sustained as addition under this ground which is consistent with the position of law as laid down by the cited decision in Man Mohan Sadani and President Industries (as reported) and followed by the department while framing the assessment for AY 2009-10 in the instant case. In view of the facts and circumstances of the case as narrated in the foregoing, the addition made in this ground is restricted to Rs. 1,27,736/-as determined above. The AO is directed accordingly." 8. After hearing the rival parties a....
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....uppression of profit cannot be ruled out and thus sustained the addition to the tune of Rs. 1,27,736/-. Taking all these facts into consideration in totality, we do not find any infirmity in the order of the Ld. CIT(A) and accordingly the same is upheld by dismissing ground no. 2 of the revenue. 9. The issue raised in ground no. 3 is against the deletion of addition of Rs. 1,22,73,108/- by the Ld. CIT(A) as made by the AO under the head undisclosed bills receivable during the year. 10. The facts in brief are that the AO has calculated the amount of undisclosed receivable of Rs. 1,22,73,108/- on the basis of replies received from three parties detailed herein given as under: Name of the party Opening Balance Work Done Payments Clo....