9911796707
TMI Blog2023 (4) TMI 146X X X X Extracts X X X X X X X X Extracts X X X X ..... hereinafter referred to as the "Act"), dated 08.03.2016. 2. Grounds taken by assessee is reproduced as under: "1. For that the order is arbitrary, Prejudice and against the weight of evidence on record and bad in law. 2. For the natural justice was denied to the appellant being every paper, record documents submitted during the course of heading which were not taken on record which were not mentioned in the said assessment order. 3. That the act of Ld. A.O was unjustified and erred in addition of Rs. 41,99,150/- the entire capital introduction by the assessee under concealment of Income and without bringing out on record any cogent reason and infirmities in the maintain of accounts of the assessee. 4. That the addition by way of Di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent bearing Acknowledgment No. 307/2015-16 was served on 01.02.2018 - apparently overwritten - very doubtful". On this note, Ld. Sr. DR could not state anything in clear terms. There is no delay in filing of the present appeal before the Tribunal from the date of 01.02.2018 which is claimed to be the date of communication of order appealed against. From the stamp affixture by the office of Ld. Pr. CIT stating receipt of the order on 01.02.2018, we safely assume that assessee was also communicated for this order on 01.02.2018, thus, we take this appeal for adjudication. 4. Brief facts of the case are that assessee is in the business of manufacturing paint, varnish, thinner and ink used for industrial purposes mainly for Indian Railways, Def ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld. CIT(A). He submitted that gold ornaments of the spouse of the assessee Dr. Minati Dutta weighing 704 gms were sold @ Rs. 2,770/- per gram totalling to Rs. 19,50,500/- in the open market. These gold ornaments formed part of her 'Stridhan' which she had accumulated over past several years of her marriage. This 'Stridhan' was beyond the ambit of wealth tax. Ld. Counsel also stated that spouse of the assessee is assessed to tax and has income from business for last several years for which copies of income tax returns for AYs 2011-12, 2012-13 and 2013-14 along with her drawings and personal balance sheet were placed on record. 4.3. Ld. Counsel also referred to the details of purchase of gold ornaments during FY 2000-01 to 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... siness. The gift deed was notarized on 18.04.2012. Thus, Ld. Counsel contended that nature and source of gift from the deceased father of the assessee is adequately explained and no addition is called for. In respect of the other two components, Ld. Counsel did not furnish anything specific. 4.6. In respect of disallowance of expenditure @ 20%, Ld. Counsel stated that these expenses have been incurred in the conduct of business and are legitimate business expenditure which has resulted into increase in the turnover of the assessee from Rs. 2.16 Cr. approximately during AY 2012-13 to Rs. 15.38 Cr. during AY 2013-14. According to him, the entire expenditure claim is bona fide and the same has been subject to audit u/s. 44AB of the Act. 5. P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Ld. Counsel explains the nature and source of the said gift made to the assessee. The deceased father was an income tax assessee having PAN. Considering these facts on record, capital contribution by way of gift from the deceased father is accepted and the addition made thereon is directed to be deleted. 6.2. In respect of other two components of surrender value from mutual fund of LIC and from personal savings and drawings of the past, nothing has been brought on record to demonstrate about the nature and source of these amounts. Accordingly, the addition made in respect of these two amounts is sustained. 6.3. In respect of ad-hoc disallowance made by the ld. AO and sustained by the Ld. CIT(A) by adopting rate of 20% in respect of ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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