2015 (10) TMI 1711

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....Rs. 1,27,78,912/- made by A.O.] made by A.O. u/s. 68 0 the Act as unexplained credit without appreciating that the same was the balance in account titled "inter branch and other adjustment Alc." which are primarily in the nature of reconciliation entries between Proprietor account and personal Individual account also most entries originated in the earlier assessment years. 2. The learned CIT(A) failed to appreciate that the receipt in bank account itself is less than the alleged unexplained credits, further in the remand proceeding the assessee had produce detailed explanation and supporting evidence before the A.O., thus the assessee had discharge the onus of explaining and reconciling the entries. 3. The learned CIT(A) finding in para ....

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.... invited to the computation of income to indicate that all the credit entry was made in respect of sale proceeds of house. It was contended by ld AR that the long term capital gain was computed at nil which was duly offered in the computation of income, therefore, credit in the capital account was arising out of the sale proceeds of the house, income of which has already been offered in the return of income. It was further contended that inter branch transfer was neither income nor an expenditure and it was just to transfer of funds from one branch to another branch of the assessee. 5. We have considered rival contentions and found that during the scrutiny proceedings, the A.O. observed that the assessee had shown a gross loss on trading b....

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....rom S. Venkataraman and has provided a copy of the ledger account of the party concerned as well as the confirmation given during assessment proceedings. A perusal of the ledger account shows that the said account reflects a journal entry dated 31.03.2009 of Rs. 18,26,316/- as loan transferred to the capital account of the assessee. A confirmation is filed stating that S. Venkat Sunderajan, younger brother of T.S. Natarajan, has an outstanding balance of Rs. 18,26,316/- with the assessee as on 31.3.2009. However, the AO observed that confirmation does not substantiate the date, mode and source of the said transaction. In view of these facts, the amount was Rs. 18,26,316/- was held to be un-explained cash credit of the assessee and the addit....

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....g assessment proceedings and was also part of the material forwarded to the A.O. during remand proceedings. 11. The A.O. also noted that the capital account of the assessee in the proprietary firm reflected an 'inter-branch transfer credit' of Rs. 127.79lakhs. The explanation given by the assessee, that the credit was on account of inter-branch transactions and that the inter - branch balances remained unreconciled since 1984 was found insufficient by the A.O. Against the above addition the assessee approached to CIT(A) and filed additional evidence under Rule 46A on the plea that sufficient opportunity was not given by the AO insofar as documents were required by the AO at the fag end of the proceedings. We found that assessee was....