TaxTMI 
TaxTMI 
TaxTMI 
2015 (3) TMI 647
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....otal business activity carried on in the same premises, 50% belonging to the father and son respectively without any basis on assumptions and surmises completely ignoring the details and facts furnished and verified during Assessment and Appellate proceedings and thus confirming the addition of Rs. 256,001/- on a/c of suppressed profit as per impounded material. 2. The ld. CIT(Appeals) also erred in law and on the facts of the case in confirming the addition of Rs. 177,685/- u/s 40A(3) in respect of transactions in the accounts of the firm M/s Punetha Vastra Bhandar owned by the father of the assessee upholding 50% belonging to father and 50% belonging to son (assessee) without any basis. 3. The Ld. CIT(Appeals) also erred in law and on the facts of the case in confirming the addition of Rs. 401,112/- as undisclosed sundry debtors of the firm M/s Punetha Vastra Bhandar owned by the father of the assessee upholding 50% belonging to father and 50% belonging to son (assessee) without any basis even after physically verifying the impounded material. 4. The Ld. CIT(Appeals) further erred in law and on the facts of the case in confirming the addition of Rs. 160,273/- as Cash found dur....
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....of impounded material amounting to Rs. 7,79,999/-, addition on account of invoking the provisions of Section 40A(3) of the Act amounting to Rs. 3,80,069/-, addition on account of undisclosed sundry debtors amounting to Rs. 8,02,223/-, addition on account of discrepancy in trading account, addition on account of unexplained cash amounting to Rs. 3,20,546/-, addition on account of trading difference in balance sheet in respect of asset, unexplained cash deposit of Rs. 1,60,000/-, unexplained cash deposit of Rs. 50,000/- and addition on account of assessee's benami deposit of Rs. 8,70,000/-. 4. Against this assessee filed an appeal before Ld. CIT(Appeal) who after considering his submissions treated 50% of business being carried out by the assessee. In respect of addition of Rs. 7,79,999/-, the Ld. CIT(Appeal) reduced the addition to Rs. 2,56,001/-, in respect of addition of Rs. 380,069/-. a direction was issued to the AO that suppressed profit be divided into two parts hence the addition of 50% was sustained in the hands of the assessee, in respect of addition of Rs. 8,02,223/-, the Ld. CIT(Appeals) sustained the addition to the extent of 50% of addition. In respect of addition Rs. ....
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....s contention of the Ld. Counsel for the assessee cannot be accepted and same is rejected. 8. Another contention of the assessee is that there is no basis to attribute 50% of the profit to the assessee. This contention of the assessee is devoid of any merit. It is not disputed by the assessee that he has been carrying out the business activity from the same premises. No evidence is placed on record proving the volume of business carried out by the assessee. The AO has given a categorical finding that no separate stock was maintained by the assessee and his father. It is contended that the addition has been made by the AO without considering the explanation offered by the assessee. This contention is contrary to the records. It is admitted position that the assessee was not maintaining proper books of accounts, therefore the AO was justified in computing the profit on the basis of the material available before him. Hence, we see no reason to interfere in the order of Ld. CIT(A) same is hereby upheld. This ground of the assesssee's appeal is dismissed. 9. Apropos, the ground no. 2, Ld. Counsel for the assessee submitted that he does not wish to press this ground. Therefore, the gro....
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....ffected to these debtors has been included into the suppressed sales and addition made thereof. Therefore, it would not be open to the Revenue to make addition of same amount. This aspect requires verification by the Ld. AO, therefore this ground is restored to the file of AO for verification. The AO is hereby directed to verify whether sales effected to the debtors in question is included into the supported sales or not and profit on such sales is estimated or not. If AO finds that sales have been included he would delete the addition. This ground is allowed for statistical purposes. 12. Ground no. 4th is against the confirmation of addition of Rs. 1,60,273/- Ld. Counsel for the assessee submitted that the cash found during the course of survey has been duly explained. He drew our attention to paper book page no. 156 on the contrary, Ld. Sr. DR supported the orders of authorities below. 12.1. We have heard the rival submissions and perused the available material on the record. We find that the Ld. CIT(Appeal) has observed that the amount could not be satisfactory explained at the time of survey. We are of the considered view that this finding of the Ld. CIT(Appeal) cannot be sus....
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....same in relevant Assessment Year if law so permits. The ground of the assessee appeal is allowed for the statistical purposes. 14. Ground no. 6 : The ground no. 6 is against the confirmation of addition of Rs. 1,60,000/-. Ld. Counsel for the assessee submitted that the authorities below were not justified in making addition. He submitted that it was demonstrated by the assessee that the amount belonged to one Shri Raj Bahadur Chand who confirmed the same. He submitted that all evidences were furnished in support thereof, there was no occasion to confirm the addition. He submitted that cash was deposited in Karnataka where the appellant has no business activity and therefore, the explanation offered by the assessee is correct. He further submitted that no inquiry was made from the depositor, the depositor is having PAN. On the contrary Ld. Sr. DR supported the orders of the authorities below and submitted that the assessing officer was justified in making addition. 14.1. We have heard the rival contention and perused the material available on record. We find that the revenue has not placed anything on record suggesting that the amount deposited by Raj Bahadur Chand in fact belong....
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....ry, Ld. Counsel for the assessee adopted the argument that were addressed in ITA No. 1152/Del/2012 Ld. Counsel for the assessee adopted the arguments that were addressed in ITA No. 1152/Del/2012. He submitted that there was no basis for bifurcating business turnover equally between son and father. 18.1. We have heard the rival contentions the facts are identical as were in ITA No. 1152/ Del/2012. Following the same reasoning as recorded in para 8 of this order. We hereby upheld the order of Ld. CIT(Appeal). This ground of revenue appeal is rejected. 19. Ground no. 2 is against the allowance of relief of Rs. 2,75,000/-. Ld. Sr. DR submitted that the Ld. CIT(Appeal) was not justified in deleting the addition. He submitted that the assessing officer has given a detailed finding the same be upheld. On the contrary, Ld. Counsel for the Assessee is supported the order of the Ld. CIT(Appeal). 19.1. We have heard the rival contentions and perused the material available on record, we find that the Ld. CIT(Appeal) has given finding on fact by observing as under :- "11.1 Considering the facts and circumstances, this amount is treated as explained in part only. It is seen that vide report ....
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....rial available on records there were certain deposits in account no. 10925759010. Thus we are not able to accept the argument that the assessee was merely an introduced of the account if he was merely introduces of the account then how the details related to the account of third party was found during the course of survey at his premises. Therefore, we hereby set aside this issue to the file of the assessing officer as to give a clear finding in respect of addition made what was the basis and material available before him for making such addition. Moreover, the Ld. CIT(Appeal) has not given any finding on this aspect of the matter. This ground of the revenue is allowed for the statistical purposes. In the result appeal of the Revenue is partly allowed for statistical purpose. 21. Now we take up ITA NO. 1485.Del.2013. The grounds raised in this appeal read as under :- "1. The reassessment framed by the Assessing Officer without providing any opportunity to the appellant to file any detail or rebut finding of CIT (A), in the individual case of Shri Jiwan Chand Punetha, which was the reason for reassessment and confirmation of such reassessment by CIT (A) is contrary to facts and ....
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....itted position that the assessee was not maintaining proper books of accounts, therefore the AO was justified in computing the profit on the basis of the material available before him. Hence, we see no reason to interfere in the order of Ld. CIT(A) same is hereby upheld. This ground of the assesssee's appeal is dismissed. We hereby reject this ground of appeal. Hence, ground no. 2 and 3 of the assessee's appeal reject. 23. Apropos to ground no. 4 the similar ground was taken in ITA No. 1152/Del/2012 as ground as ground no. 3. The Representative of the parties have adopted the same argument. There is no change under facts and circumstances pointed out. Therefore, for the same reasoning as in para 11 of the order which is reproduced hereinafter :- "The assessing officer had made addition on the basis that the assessee neither furnished list of sundry debtors as on 31.03.2008 nor could he explain the sundry debtors despite various opportunites. The contention of the Ld. Counsel for the assessee is that everything was explained before the assessing officer and there was no undisclosed sundry debtors. He drew our attention to paper book page 91, 92 and 98 to demonstrate that debtors....