2015 (10) TMI 1512

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....e at 101, Nilgiri Apartments, Barakhamba Road, New Delhi. During the course of survey operations, it was noticed that the assessee received professional receipts through cheques as well as in cash, but, had declared in his return of income only the amounts received by cheques. During the course of survey operations, certain diaries, registers, loose papers, data from computer copied in hard disk etc. were impounded. These documents were marked as Annexure A-1 to A-27. Entries in these registers were confronted to the assessee during the course of recording of his statement at the time of survey on 1.2.2010. Vide question no. 10, the assessee was required to produce his books of account for the assessment year 2005-06 to 2009-10, in response to which it was stated that the same will be produced, but were never produced. The assessee was confronted with the registers incorporating the entries of receipts of fee. On being called upon to identify whether such entries in the registers pertained to him, the assessee replied that the same pertained to M/s C&C Associates, being the professional firm, in which he was a partner for some period of the year under consideration. He, however, su....

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.... amount of receipts during the month (in Rs.) Expenses of cheque Expenses of cash (by other name) Net profit for the month Page No. 1 April, 2004 A-7 77-74 4,94,580 50,583 76,711 3,67,286 74 2 May,, 2004 -do- 73-70 5,27,390 47913 81288 3,98,189/- 70 3 June, 2004 -do- 69-65 4,16,680/- 99,308 79,755/- 2,37,617/- 65 4 July, 2004 -do- 64-61 6,05,259/- 96,382 96,708/- 4,12,169/- 61 5 Aug, 2004 -do- 60-53 16,99,797/- 1,22,529/- 3,41,329/- 12,35,939 53 6 Sept., 2004 -do- 52-48 8,61,399/- 1,04,008/- 1,24,470/- 6,32,921 48 7 Oct, 2004 -do- 47-43 4,91,775/- 86,302/- 60,250/- 3,45,223 43 8 Nov, 2004 -do- 42-36 5,93,113/- 73,987/- 54,195/- 4,64,931 36 9 Dec, 2004 -do- 35-30 7,14,291/- 1,02,836/- 75,649/- 5,35,806 30 10 Jan, 2005 -do- 29-23 7,87,609/- 2,03,546/- 1,13,949/- 4,70,114 23 11 Feb., 2005 -do- 22-17 6,16,706/- 1,56,924/- 88,700/- 3,71,082 17 12 March, 2005 -do- 16-10 10,05,307/- 1,89,077/- 1,21,143/- 6,95,087 10 Total 88,13,906/- 13,33,395/ 13,14,147/- 61,66,364   4. The AO noticed that the above calculation of net profit from the register maintained by the assessee for the period relevant to the assessment year under consideration divulged income of R....

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.... opposed to a sum of Rs. 22,58,500/- which was declared by the assessee in the revised return of income. During the course of the first appellate proceedings, the assessee filed, inter alia, a summary of recordings in the impounded register containing infirmities in the calculation of income as made by the AO. The same was sent by the ld. CIT(A) to the AO for comments. The AO vide his letter dated 15.10.2012 concurred with the view of his predecessor and did not mention anything further refuting the claims/objections made by the assessee. The assessee was also given an opportunity to file his comments against the AO's remand report, which were submitted and have been recorded in the impugned order. The ld. CIT(A) noticed that the objections raised by the assessee in relation to the wrong calculation of income from the impounded registers were not disproved by the AO. The ld. CIT(A), on the basis of summary of recordings in the impounded registers showing month-wise income and expenses, computed total income of the assessee at Rs. 40,17,517/- as against Rs. 54,00,889/- worked out by the AO. This resulted into a relief to the extent of Rs. 13,83,372/-. The Revenue is contesting such ....

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....t from 1.4.2004 to 31.3.2005 totaling to Rs. 5,35,560.52. On being called upon to explain the nature of the above deposit entries in the bank account, the assessee submitted the narration and also accepted a sum of Rs. 2,82,838/- as undisclosed income emanating from this savings bank account. Entry-wise narration given by the assessee against the deposits in the bank has been reproduced on pages 15-16 of the assessment order. The AO got convinced with the assessee's contention to the extent of four entries representing deposits in this bank account to the tune of Rs. 36,295/-. He further observed that the assessee was a partner in Costa & Chopra, Advocates in April, 2004 and drew a salary of Rs. 7,500/- for each month, which was not separately shown as taxable. In the absence of submitting any proof about the claim of transfer entries from another bank account to this bank account, the AO held that the entire amount of Rs. 4,99,266/- (Rs.5,35,560 - Rs. 36,295/-) was undisclosed income for the year. This addition was made as against the assessee's letter dated 15.12.2010 offering additional income on this score amounting to Rs. 2,82,838/-. That is how, a sum of Rs. 4.99 lac was adde....