TaxTMI 
TaxTMI 
2013 (4) TMI 171
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.... added back. 2. That the sum of Rs. 30,85,000 being commission payable is added but the assessee has credited a similar amount for which the assessee claimed that the commission receivable. The LAO has erred in disallowing the commission payable while the assessee has offered the same to tax correspondingly. 3. That the sum of Rs.83,94,000 being sundry debtors has added by LAO stating because of lack of confirmation, but confirmation of sundry debtors cannot be added as the source of the same has already been explained in the liability side of balance sheet. 4. That the assessee is not liable for any penalty imposition as the basic addition basing on which penalty proceeding has been initiated do not stand the scrutiny and there is no co....
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....94,527 being application of the funds when the major advance was to Sudha Devi Foundation amounting to Rs.5.5. Crores. As the assessee had failed to obtain confirmations from the debtors he proposed to tax the sum of Rs.83,94,527 being unavailable. In the liability side of the balance sheet capital reserve of Rs.40,39,630 was lying which amount he held was share premium account being the investment by share holders to which the assessee could not give a befitting reply. He further made addition of Rs.40,39,638. 3. Aggrieved the assessee appealed before the first appellate authority, before whom the assessee appellant submitted that the Assessing Officer has added 0.5% commission to the total income amounting to Rs.6,17,000 as he was not ab....
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....uch effected in the books which in no wild imagination be treated as concealment. In the case of this assessee, the learned assessing officer has added debtors amounting to Rs 83,94,527 but the sources of the same has already been taxed in the liability side of the balance sheet so adding back debtors again to the total income is bad in law hence not justified. Further commission payable amounting to Rs.30,85,000 has been added but commission receivable of the same amount has already taken in the profit and loss account accordingly brought to tax, hence adding back commission payable again is bad in law hence not justified. However, the learned CIT(A) negated the claim of the assessee justifying the action of the Assessing Officer on all th....
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....llowed unilaterally. The finding of enhancement of commission therefore clinches the issue in favour of the assessee that it was on the basis of misinterpretation of facts by the assessing authorities insofar as it is not denied that the commission was paid on receipt of commission which income the authorities are prepared to accept against the income so rendered by the assessee. The increase of Rs.6,17,000 had therefore no basis on the facts and circumstances as brought on record by the Assessing Officer. 4.1. Similarly having accepted the advances against the investment of more than Rs.4 Crores which income has been rendered to tax by the assessee in the impugned Assessment Year could not be challenged insofar as the amount owed to the a....
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.... 5. The learned CIT-DR opposed the contentions of the learned Counsel for the assessee. She submitted that the book entries were to be verified by the Assessing Officer which the assessee could not explain insofar as that having rendered income the assessee was to establish by way of regular return the modus operandi of holding the assets and liability when the assessee himself admits that the commission earned as commission payable leave no room for having any business transactions. 6. We have heard the rival parties and perused the material available on record. On our careful consideration of the facts and circumstances of case as brought on record by the authorities below, we are inclined to find a meaning into the modus operandi of th....