2014 (3) TMI 215

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ome of Rs.3,62,730/-. A.O. noticed on the basis of copy of the trial balance filed by the assessee, that unsecured loans to the extent of Rs.71,39,765/- and advances of Rs.32,09,266/- were received from different persons. Since the details were not furnished, A.O. added the entire amount of Rs.1,03,49,031/- as income of the assessee. Ld. CIT(A) after considering the assessee's submissions, refused to admit the additional evidence and confirmed the additions. Assessee is in appeal on the above issue of adding the outstanding loans and advances. 4. In the meantime, the Ld. CIT-III, Hyderabad invoked provisions of section 263, as the A.O. has not examined the cash deposits in the banks and deposits in chit funds but only considered the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ing out the peak credit by the CIT and cash book did not indicate any deficit cash, Ld. CIT, considered the receipt and payment account and remitted the matter to the A.O. for examination, while accepting the addition of income agreed of Rs.9,52,831/- in the order. Ld. Counsel further submitted that the in consequential orders passed under section 143(3) read with section 263, the A.O. arrived at the net peak cash deposit at Rs.1,30,86,700/- and reduced the amount which was already assessed at Rs.1,03,49,031/- (cheque payments) and made an addition of the net amount only of Rs.27,37,669/-. It was submitted that the assessee has entire confirmations as far as the receipt of unsecured loans and advances totaling to Rs.1,03,49,031/- and there ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....admitted additional income), and directed the A.O. to examine the peak cash deposits, wrongly directed the A.O. to factor the addition already made, which were not out of cash deposits but on cheque receipts. A.O., therefore, made net addition of only Rs.27,37,669/-, even though in his own working he arrived at net peak cash deposit of Rs.1,30,86,700/-. Therefore, the orders which are for adjudication before us suffer in many respects. More over the additional evidence of assessee was not considered. In view of this, we are of the opinion that all the orders of the authorities are to be set aside and the entire issue of examination of receipts and payments/ deposits in bank and other accounts are required to be examined afresh by the A.O. b....