AI Drafter 
TaxTMI 
TaxTMI 
2014 (7) TMI 336
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....evously erred in law and facts in upholding the validity of reassessment u/s. 147. The ld. CIT(A) has failed to appreciate that the notice for reopening assessment was bad in law and illegal. 4. At the time of hearing, the Authorized Representative of the assessee submitted that he is not pressing this ground of appeal and also made an endorsement to the effect on the grounds of appeal attached to the memo of appeal filed before us. Therefore, this ground of appeal is dismissed as not pressed. 5. Ground no. 3 of the appeal is directed against the order of the Commissioner of Income Tax (Appeals) confirming the addition of Rs. 5.95 lakhs u/s. 69C of the Act. 6. The brief facts of the case are that the Assessing Officer observed that....
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....lanation and the evidences filed by the assessee for the reason that mode of payment of residual amount was not brought on record, the entry reversed was an afterthought and circumstances under which the entry was cancelled and no other amended certificate was issued by the assessee was not satisfactorily explained. He observed that expenses of Rs. 5,95,000/- remained unexplained. According to the Assessing Officer, provision of section 69C provides that where in any financial year, an assessee has incurred any expenditure and he offers no explanation about the source of such expenditure or a part thereof or the explanation offered by him is not satisfactory, the amount covered by such expenditure may be deemed to be the income of the asses....
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....appellate proceedings the Ld. A.R has stated that the TDS certificate was rightly issued showing repairing charges of Rs. 10.20 lacs. Since the payment of full amount of Rs. 10.20 lacs was not made, the appellant ought not to have deducted TDS on such amount. Therefore under the given circumstances the A.O. has rightly treated the amount of Rs. 5,95,000/- as unexplained expenses and added the same to the income. The Ld. A.R has not brought on record any evidence to contradict the findings of the A.O subsequently before me. 4.4 As regards the objection of the appellant that the A.O has mentioned unexplained investment in the computation of income does not stand ground since it is just a typographical error. The Assessing officer has elabo....
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....ential amount of Rs. 5,95,000/- on 31- 08-2004. The learned counsel for the assessee referred to the copy of account of the assessee company in the books of M/s SCPL wherein similar entries appear and they have passed the debit entries of Rs. 5,95,000/ - to the account of the assessee on 28-01-2005. A copy of the account of the Assessee Company as well as M/s SCPL has been filed in the compilation of the assessee. 7. The learned DR referred to page 4 of the compilation filed by the assessee which is the account copy of M/s SCPL in the books of the assessee wherein an amount of Rs. 85,000/- has been received on account of service charges in the month of April, 2004 onwards on monthly basis till August, 2004. He submitted that if the amoun....
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....ontinued and therefore the necessary entries of cancellation of the contract were passed on 31- 08-2004 in the books of the assessee company in the account of M/s SCPL and the differential sum of Rs. 5,95,000/- was credited to their account. The assessee has also filed the ledger account copy of the assessee company in the books of M/s SCPL wherein similar entries were passed by M/s SCPL and the differential amount of Rs. 5,95,000/- was debited to the account of assessee company on 28-01-2005 and, therefore, there remains no discrepancy between the account of the assessee company and M/s SCPL. Merely because the TDS was deducted at a higher amount and paid to the credit of the Central Government is not a ground to make the impugned addition....