TaxTMI 
TaxTMI 
2015 (4) TMI 544
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Act. 2.2 Aggrieved by the order of assessment for Assessment Year 2009-10 dt.26.12.2011, the assessee preferred an appeal before the CIT (Appeals) - I, Bangalore. The learned CIT (Appeals) dismissed the assessee's appeal vide the impugned order dt.12.8.2013. 3.1 Aggrieved by the order of the CIT (Appeals) - I, Bangalore for Assessment Year 2009-10 dt.12.8.2013, the assessee has preferred this appeal before the Tribunal raising the following grounds :- " 1. DISCOVERY OF NEW SOURCE OF INCOME BY CIT (APPEALS) Learned CIT (Appeals) ought to have noted that invoking section 68, after deleting the addition under Section 2(22)(e) with respect to the same time, amounted to discovery of new source not permissible under Section 251(1)(a) read with several Supreme Court and High Court judgments including that of the Hon'ble Karnataka High Court. 2. SECTION 68 Learned CIT (Appeals) erred in invoking section 68 with respect to the credit of Rs. 1.25 Crores shown in the balance sheet of the appellant firm as - 2.1 None of the requirements of section 68 are met in this case. 2.2 The party's name (Deccan Alloys Private Limited) PAN and address and the cheque particulars ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ll of them challenge the action of the CIT (Appeals) in invoking the provisions of section 68 of the Act with respect to the credit of Rs. 1.25 Crores shown in the balance sheet of the assessee after deleting the addition made by the Assessing Officer of the same amount under Section 2(22)(e) of the Act. It is contended that this amounted to the discovery of a new source of income by the learned CIT (Appeals) which is not permissible under Section 251(1)(a) read with several judicial decisions. The learned Authorised Representative was heard in support of the grounds raised. 3.2.2 The learned Authorised Representative further submitted that the learned CIT (Appeals) was wrong in invoking section 68 of the Act with respect to the credit of Rs. 1.25 Crores appearing in the assessee's balance sheet as on 31.7.2009. The learned Authorised Representative contends that the identity and existence of the creditor i.e. M/s. Deccan Alloys Pvt. Ltd. is established by furnishing of name, address, PAN details, the details of cheques, books of account, etc which establish the nature and source of credit of the concerned sum of Rs. 1.25 Crores. It was submitted that the cheque dt.27.3.2008....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... amount of Rs. 1.25 Crores is mentioned in the assessee's return of income, and was considered by the Assessing Officer in the order of assessment it cannot be considered as a new source of income and the learned CIT(A) has therefore correctly invoked his power of enhancement under Section 251(1) of the Act. It was submitted by the learned Departmental Representative that at the appellate stage, additional evidence may be taken and further enquiry can be made by the learned CIT(A). In view of the above, it is submitted that the impugned order of the learned CIT(A) in invoking the provisions of section 68 of the Act to bring to tax the unexplained credit of Rs. 1.25 Crores in the assessee's books of accounts is in order and ought to be upheld. 3.4.1 We have heard both parties and perused and carefully considered the material on record. The facts of the matter as emanate from the record are that in the course of assessment proceedings, the Assessing Officer on examination of the financial statements balance sheet as on 31.3.2009 filed along with the return of income, observed that the assessee has shown unsecured loans of Rs. 2,50,00,000. On examination of the details call....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ount for the financial year 2008-09 disclosed as under :- BHUWALKA SALES CORPORATION BALANCE SHEET AS AT 31ST MARCH, 2009. (AMOUNT IN INDIAN RUPEES) Particulars Sch. No. As at 31.3.09 As at 31.3.08 I.Source of funds 1. Share Holder Funds 200,00.00 200,000.00 a. Capital Account b. Current Account 01 5,864,844.72 2498,015.07 2. Loan Funds : 02 58,213,410.42 62,965,037.22 3. Unsecured Loan 03 25,00,000.00 II. Application of funds 1.Fixed Asset: Gross Block Depreciation 5A 66,439.00 66,070.00 9,969.00 3,694.00 NET BLOCK 56,470.00 57,376.00 2. Investments 04 10,000.00 10,000.00 3. Current Assets, loans and advances a. Sundry Debtors 05 161,466,386.00 97,910,966.00 b.Cash & Bank Balances. 06 262,459.14 45,208,083.29 c.Loans & Advances 07 4,037,631.00 653,526.00 166,036,476.14 143,772,575.29 Less : Current liabilities & Provisions. 08 76,824,691.00 78,176,899.00 Net Current Assets 89,21....