TaxTMI 
TaxTMI 
2012 (5) TMI 616
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.... for adjudication. Smt. G.Venkatalakshmi ITA No.1361/HYD/2010 - A.Y. 2003-04 2. This appeal by assessee directed against order of CIT(A) dated 24.08.2010. The assessee raised the ground that CIT(A) erred in sustaining the additions of Rs. 4,81,009/- made by the A.O. with respect of the Bank deposit as unexplained investment u/s 68 of Income Tax Act. 3. The brief facts of the case are that a search and seizure operation under section 132 of the Act was conducted at the residential premises of the assessee. Consequently notice under section 153A of the Act was issued by the assessing officer. In response to the same, the assessee filed the return of income admitting 'nil' income. In course of the assessment proceeding, the assessing officer found that there are deposits in the Andhra bank account of the assessee to the extent of Rs. 4,81,009/- Out of the same the assessee had given loan of Rs. 2,00,000/- by cheque and Rs. 2,25,000/- by cash to Lahari Green Park. No explanation was filed with regard to the source of the said deposits. Similarly the assessee had received cash loan of Rs. 22,29,160/- from M/s Lahari Green Park a group concern as per the Receipts and ....
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....e advances were received, could not be established either during the assessment proceeding or during the appellate proceeding. Whereas, it is submissions of the learned counsel for the assessee that all the details of the deposits were available and no proper opportunity was given to the assessee to explain the same. Under this circumstances, in view of same, addition made by the assessing officer to the extent of Rs. 4,81,009/- being the deposits in Andhra Bank is restored to the file of the assessing officer to reconsider the submissions of the assessee with a direction to the assessee to produce all the details, as required by the department to explain the sources for the deposits in the Andhra bank. Thus, the appeal of the assessee is allowed for statistical purpose. Smt. G. Venkatalakshmi ITA NO.1362/HYD/2010-AY 2004-05 6. The only issue arising out of this appeal is whether the CIT [A] is correct in sustaining the additions of Rs. 23,14,953/- made by the assessing officer with respect to the bank deposits under section 68 of the Act or not. In course of the assessment proceeding, the assessing officer, found that there are deposits in the Andhra bank account of th....
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....in appeal before us for the directions given by the CIT [A] and whereas the department is in appeal before us for accepting the claim of the assessee for exemption under section 54 of the Act by the CIT [A]. 9. The brief facts of the case are that, in the assessment order, the AO observed that the assessee had shown long term capital gain of Rs. 3,00,91,500/- on sale of a residential house in Jubilee Hills. Out of this capital gain, the assessee had shown purchase of land for construction of a house at Rs. 2,99,52,000/- and investment in capital gains scheme account of Rs. 1,50,000/-. Accordingly, the assessee claimed the capital gain exemption on the entire amount under section 54 of the Act. The assessing officer allowed the claim of Rs. 1,50,000/- invested in Capital Gains Scheme. As regards the purchase of land for construction of the house, the assessing officer observed that the payments were made and an agreement of sale was entered on 29-10 2007. The said sale deed was registered on 15-2- 2008. Since the registration of the sale deed was after the due date for filing the return of income, the assessing officer was of the view that the assessee was not eligible for....
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.... land, when the date of purchase deed is beyond the date of filing of the return of income. It is submitted that the date of registration is paramount and not the date of agreement or any other equivalent to that, for getting the benefit of exemption under section 54 of the Act. He relied on the order of the assessing officer. 12. We have considered the rival submissions and perused the materials available on record. We find that the assessing officer had disallowed the exemption under section 54 of the Act made by the assessee on the ground that only a sale agreement was entered on 29-10-2007 and the sale deed was registered on 15-2- 2008 after the due date of filing the return. It is the case of the department that the assessee only purchased the land for construction of the house but no evidence was produced regarding the construction of the house within the time limit which is the basic condition for allowing exemption under section 54 of the Act. On the other hand, it is the contention of the learned counsel for the assessee that the entire amount of capital gain was utilized by way of investment in purchase of a plot of land. As regards construction, it is submitted that t....
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.... submitted by the learned counsel for the assessee, except some finishing making it fit for occupation. As the assessee has substantially completed all the work of construction and has invested the entire net consideration, it has to be inferred that the assessee has complied with the conditions provided under section 54 of the Act. In our considered view, as the assessee has acquired substantial domain over new house and has made substantial payment towards cost of land and construction, within a period specified under section 54 of the Act, the assessee said to have complied with the requirements for claiming the exemption under section 54 of the Act. In view of the same, we direct the assessing officer to allow the claim of the assessee. This ground in assessee appeal is allowed whereas; the appeal of the revenue is dismissed. 13. Now, we will turn to the other issue in the appeal of the assessee which relates to an addition of Rs. 27,50,000/ made by the assessing officer towards cost of construction while computing the short term capital gain. In the assessment order, the assessing officer observed that during the year under consideration, the assessee had sold a house at Bh....
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....132 of the Act was conducted at the residential premises of the assessee. Consequently notice under section l53A of the Act was issued by the assessing officer. In response to the same, the assessee filed the return of income for the year under consideration admitting income of Rs. 19,96,929/-. In course of the assessment proceeding, the assessing officer found that, during the year under consideration, the assessee had received cash loan of Rs. 65,55,980/- and loan by cheque of Rs. 4,34,28,009/- from Lahari Green Park and Rs, 37,57,500/- from Lahari Infrastructure Ltd as per the Receipts and Payments account and the same was utilized for making various investments as per the Receipts and Payments account. The assessee was requested to file the details of the confirmation of the parties in respect of loans accepted during the year indicating the, the assessee failed to furnish the confirmation of the unsecured loans accepted during the year. Accordingly, the same was treated as unexplained cash credit under section 68 of the Act and added to the returned income of the assessee. Apart from other disallowance, the assessing officer found that, as per page No. 210 of seized books a....
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.... purchase of lands, in the absence of any documentary evidence produced by the assessee substantiating the actual amount of investment made by her during the year under consideration. If required, the matter may be sent back to the file of the assessing officer for reconsideration with a direction to the assessee to substantiate her claim. On the other hand, the learned counsel for the assessee submitted that the addition was made solely on the basis of a sheet numbered page 210 of annexure A/LIL/PO-01/01. The said sheet prepared by a staff shows the details of land purchased by the assessee and others. The assessee further submitted that the land against the assessee's name is the total land purchased by her over a period of time and the purchases have been accounted for over the last so many years. In fact, a large portion of the same has also been sold. The assessee filed the backup papers as to how the sheet has been prepared and stated that the backup papers show that the purchases have been accounted for in the respective years of purchase and as such it does not tantamount to unexplained investment. The CIT [A] deleted the addition after thoroughly examined by him in ....
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....the assessing officer to examine the relevant records of the parties and decide the issue in accordance with law. However, regarding other property, we find that, on perusal of the paper book, these lands were also not purchased during the financial year 2007-08 relevant to the assessment year 2008-09 and same is falls in the earlier financial year. In view of the same, this addition of Rs. 24.96 Crores made by the assessing officer on this issue is to be deleted and he can take necessary action as per the provisions of the Act in respective assessment years as directed by the CIT(A) . Therefore, the appeal of revenue is dismissed. 21. The first effective ground of appeal by the assessee is whether the CIT [A] is right in sustaining an amount of Rs. 92,40,000/- as unexplained investments out of the land purchased. Since, we have already dealt this issue in earlier para-19-20 of this order and this ground of the assessee is allowed. 22. The next effective ground of appeal by the assessee relates to addition of Rs. 37,57,500/- being profit on sale of land. The assessing officer found that as per page No. 38 of Annexure A/LIL/P0/04, the assessee had sold land to the extent of Rs....
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....d not appear in the receipt and payment account filed by the assessee during the assessment proceedings. In view of the same, the assessing officer treated the purchase of ornaments amounting to Rs. 8,17,140/- as unexplained investment under section 69 of the Act and added back to the returned income. Being aggrieved against the assessment order, the assessee went on appeal before CIT [A]. The CIT [A] confirmed the addition made by the assessing officer and hence, the assessee is in appeal before us. 26. The learned counsel for the assessee submitted that as per seized material AM/CH/02 at pages 5 to 9, Smt. Swapna has bought the gold. This purchase was paid for by Shri. G. Hari Babu through cheque to M/S Shree Jewellers. The counsel taken us to the page 1 of the paper book filed. Therefore, it is submitted that the additions made by the assessing officer on this issue as unexplained investment under section 69 of the Act is not correct on the facts of the case. On the other hand, the learned departmental representative relied on the orders of the lower authorities below. The ld. DR submitted that no documentary evidence was produced either before CIT(A) or before assessing offi....
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....se of the assessment proceeding under section 153A of the Act, the assessing officer found that as per seized material at page No. 29 to 33 of A/CH/01, the assessee had purchased agricultural land in Bhanoor of 4 acres 2 guntas for a total amount of Rs. 68,85,000/- out of which cash amounting to Rs. 20 lakhs was paid. Assessee was requested to explain the source for purchase of the land. However, no reply was filed. The assessing officer observed that this transaction was not reflected in the Receipts and Payments account. Accordingly, an amount of Rs. 68,85,000/- was treated as unexplained investment under section 69 of the Act and added to the returned income. On appeal, the CIT [A] held that the addition of Rs. 20 lakhs which has been paid in cash by the assessee as per the agreement of sale remains unexplained and the same needs to be added back to the income. As regards the balance amount of Rs. 48,85,000/- it has not been established by the assessing officer that the assessee had in fact purchased the said land in pursuance of the agreement for sale. Since the agreement indicates that the balance amount shall be paid only after registration of the sale deed, it cannot be said....
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....ted. This indicates that the vendors had in fact received the advance mentioned in the agreement of sale. Being so, though the assessee has not signed the document, the payment has been made since the vendors acknowledge the receipt of the same and same to be considered as unexplained in the hands of assessee. Regarding balance of amount of Rs. 48.85 lakhs, it is not established by the assessing officer that the assessee had in fact purchased the said land in pursuance of the agreement for sale. Since, the agreement indicates that the balance amount shall be paid only after registration of the sale deed, it cannot be said that the said amount has actually passed from the buyer to the seller in the absence of the concrete evidence regarding the fact that actual sale . We also find that the department did not bring anything on record to show that the assessee in fact completed the transaction and paid the balance amount. In view of the same, part of the addition made by the assessing officer is not sustainable. In the result, the appeal of the assessee as well as the revenue are dismissed. Smt. C. Swapna Assessee's appeal in ITA No. 672/HYD/2011 - AY 2007-08 Revenue's....
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....n under section 54 of the Act at Rs. 5,32,48,000/- . Therefore, the ground raised by the assessee is allowed on this issue and ground raised by the revenue is dismissed. 36. The next effective ground of the assessee is relates to addition sustained by the CIT [A] towards unexplained investment of Rs. 7.32 lacs out of Rs. 22.32 lakhs made by assessing officer. It is the contention of the learned counsel for the assessee that majority of the jewellery purchases have been explained within the limited time given and no sufficient opportunity was given to the assessee to explain the balance jewellery. Under these circumstances, we feel it proper to send this issue back to the file of the assessing officer to reconsider the issue afresh after giving proper opportunity to the assessee of being heard. The ground raised by the assessee on this issue is allowed for statistical purpose. 37. The next effective ground raised by the assessee relates to addition sustained by the CIT [A] towards unexplained cash credits under section 68 of the Act. In the assessment order, the assessing officer observed that during the year under consideration the assessee had received cash loan of Rs. 1,57,....
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....s. 4,30,46,085/- sustained by the CIT [A] is correct and the same is to be confirmed since the assessee failed to explain satisfactorily before the assessing officer with evidence. 40. We have considered the rival submissions and perused the materials available on record. Undisputedly, the amount received from the prospective buyers already been shown in the balance sheet under the head current liabilities until the plot has been registered in the name of the buyer. It appears that list of persons was also given to the lower authority. Once, the amount was shown in the balance sheet, and the details of persons from whom the assessee received the advance were given, the onus is on the assessee in proving the sources of the advance. The CIT [A] has taken sale deed as the basis to substantiate the advance and found that an advance of Rs. 4,30,46,085 is not properly explained by the assessee and no material was submitted by the assessee. Before us, the AR submitted that plots were registered subsequently in the name of those parties from whom amounts have been received as advance and it is not correct to consider only sale deed registered in the assessment year as the only proof to ....
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....ffective ground of appeal relates to the addition of Rs. 32,16,00,000/- being unexplained investment in purchase of land. In the assessment order, the assessing officer observed that as per page No. 210 of seized document annexure A/LIL/P01/01, it was found that the assessee had purchased 134 acres of land in and around Bhanur, Nandigama, Kondakal, Sankarapalli, etc. During the assessment proceeding, the assessee was requested to furnish the details of the land purchased and the cost and source of investment for the same. The assessee had failed to file the details. Therefore, the assessing officer relying on similar purchase made by Sri G. Hari Babu as evident from page No. 70 of A/LIL/PO-2/02 took the average cost of land at Rs. 24 lakhs per acre and arrived at the investment value for 134 acres at Rs. 32,16,00,000/- and added to the retuned income of the assessee. On appeal, the CIT [A] deleted the addition, hence, the revenue is in appeal before us. 44. The learned departmental representative submitted that the CIT [A] erred on facts and in law in deleting the amount of Rs. 32.16 crores added as unexplained investment in purchase of lands, in the absence of any documentary e....
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....f Rs. 60.00 lacs merely on the ground that the receipts were not signed by the recipients. The learned departmental representative also submitted that the addition was deleted on the ground that the similar addition was not made in the hands of the mother of the assessee. It is submitted that the concept of res judicata is not applicable to the income tax proceedings. On the other hand, the learned counsel for the assessee submitted that the said addition was based on the seized material at page 102 and 103 of A/LIL/P01/01. It is submitted that these two papers are receipts which are not signed by persons receiving them and pertains to advances received against purchase of plot No.751. It is submitted that assessee and her mother had purchased a plot bearing No.751, Banjara Hills, Hyderabad vide document No.617/2008 from the same persons whose names are appearing on the unsigned receipts. This was purchased for a total consideration of Rs. 7,60,00,000/-. It is evident that the plot No. in the said deed and the receipts are one and the same and the entire consideration has been accounted by the assessee. Without prejudice to the above, it is also submitted that the unsigned papers h....
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....ich we have decided in the previous assessment year in para-40 of this, in the assessee's own case. Following the stand taken there, we direct the department to consider this amount of Rs. 5,34,61,744/- being the advance received by the assessee from the prospective customers if the sale deed is registered in subsequent assessment year. As regards the unsecured loan of Rs. 14,70,573/-, we find that no explanation has been filed by the assessee either before the assessing officer as the assessment is completed in a hurried manner. In our opinion, it is appropriate to give an opportunity to the assessee to put forth her case. Accordingly, this ground is allowed for statistical purposes. 50. The next effective ground of appeal by the assessee relates to addition of Rs. 2,62,000/-being unexplained money found during the course of search. We find that during the assessment proceeding, the assessee was asked to explain why the cash of Rs. 2,62,000/- found during the course of search should not be added to the returned income. In spite of opportunity given to the assessee, no satisfactory explanation was filed. Before us, the learned counsel for the assessee submitted that the same was....
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....we feel it proper to send this matter to the file of the assessing officer for fresh consideration after giving proper opportunity to the assessee of being heard. We direct accordingly. In the result, both the grounds of appeal by the assessee are allowed for statistical purpose. Shri. G. Sanjay Chowdary Assessee's appeal in ITA No. 463/HYD/2011 - AY 2004-05 Revenue's Appeal in ITA No. 761/HYD/2011 - AY 2004-05 53. These are cross appeals directed against the order of CIT(A) dated 18.02.2011. The assessee filed the return of income admitting total income of Rs. 2,95,649/-. In course of the assessment proceeding under section 153A of the Act, assessing officer found that there were deposits on various dates in the bank account of the assessee in Axis Bank, Jubilee Hills branch amounting to a total of Rs. 6,13,025/-. Similar deposits amounting to Rs. 33,92,295/- was found in Andhra Bank, Jubilee Hills branch. It was also found that during the year under consideration, the assessee had shown receipt of cash loan of Rs. 13,25,873/- and loan by cheque of Rs. 1,18,250/- from Lahari Green Park as per Receipts and Payments Account. The assessing officer observed that the deposi....
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....eel it proper to send this matter to the file of the assessing officer for fresh consideration after giving proper opportunity to the assessee of being heard. We direct accordingly. In the result, both the grounds of appeal by the assessee are allowed for statistical purpose. The appeal filed by the assessee is partly allowed for statistical purposes. 55. The effective ground of appeal raised by the revenue relates to the addition made by assessing officer relating to unexplained investment of Rs. 17.50 Crores in purchase of land. At the outset, we find that the CIT [A] after perusing the assessment records, the seized materials as well the remand report sent by the assessing officer, observed that the purchaser of the land is Lahari Green Park [LGP] who have also paid the sale consideration to the vendors and the vendors have acknowledged the same. He also observed that several lands were purchased in the earlier assessment years and the same should not be assessed in the current assessment year under consideration. The issue also discussed with the assessing officer, vide his observation at para 4.3 of his order, before making his observation. Considering the totality facts an....
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....as not been given, we feel appropriate to remit back the issue to to the file of the AO for fresh consideration. In the result, the appeal of the assessee is partly allowed for statistical purposes. 58. The effective ground of appeal by the revenue is raised by the revenue relates to the addition made by assessing officer relating to unexplained investment of Rs. 29.75 Crores in purchase of land. At the outset, we find that the issue is already decided by us, on similar and identical circumstances, in favor of the assessee in para-48 of this order. For the reasons stated above and after considering the totality facts and circumstances of the case, we find no infirmity in the order of the CIT [A], in which he clearly demonstrated that the addition cannot be sustained in the hands of the assessee, in deleting the addition of Rs. 29.75 crores as unexplained investment in purchase of lands. We uphold the direction of the CIT(A) to the assessing officer to examine the contents of seized documents A/LIL/01 and decide the issue in accordance with law. We confirm his order on this issue as decided by us in para 40 of this order. 59. In the result, the appeal of the revenue is dism....
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....being heard. Thus, the ground raised on this issue is partly allowed for statistical purpose. 62. The next effective ground of appeal relates to profit on sale of plot in Bhanur amounting to Rs. 11,44,583/-. The learned counsel for the assessee submitted that the assessee was the GPA holder for the purpose of executing the documents and the said profit / sale has been duly accounted by G.Hari Babu of Lahari Green Park in his accounts for which the learned departmental representative relied on the orders of the lower authorities. If both the transactions on this issue are duly accounted in the hands of LGP on the basis of account copies filed in the paper book at pages 15-20-29-34 and as per sale agreements with Ashish Gogia and Ali Asgar, then the additions not called for. Therefore, this issue is set aside to the file of assessing officer for fresh consideration. The ground of appeal by the assessee is partly allowed. In the result, the appeal of the assessee is partly allowed for statistical purpose. Shri. G. Sanjay Chowdary Assessee's appeal in ITA No. 465/HYD/2011 - AY 2007-08 63. This appeal by assessee is directed against the order of CIT(A) dated 15.02.2011. 6....
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....for the same. The assessee failed to furnish the details. Accordingly, the assessing officer treated the entire purchase of land as unexplained investment. Taking the prevailing market rate at Rs. 24 lakhs per acre, he made an addition of Rs. 34,08,00,000/- to the total income. The assessing officer also made an addition of Rs. 4,80,000/- being the unexplained expenditure under section 69C of the Act. Thus the total income was assessed at Rs. 36,56,34,825/-. On appeal, the CIT [A] deleted Rs. 32,81,40,000/- and sustained Rs. 1,26,60,000/- towards unexplained investment in purchase of lands. Apart from the deletions, the CIT [A] has not given proper finding in respect of Rs. 18,93,944/- towards unexplained cash credit under section 68 of the Act. Revenue is in appeal before us the deletion made by the CIT [A] towards unexplained investment in purchase of land. The assessee is in appeal before us for the additions confirmed by the CIT(A). 66. At the outset, we find that the issue raised by the revenue is already decided by us, on similar and identical circumstances, in favor of the assessee in para-40 of this order. For the reasons stated above and after considering the totality f....
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.... the AY 2002-03 the assessee had shown receipt of gift worth Rs. 2,70,106/- on the occasion of marriage and other advances of Rs. 1,19,000/- as per the Receipts and payments account. However, in spite of opportunity afforded, the assessee failed to furnish the particulars of loan, gift along with confirmation. The assessing officer therefore added the receipts of Rs. 3,89,106/- treating the same as cash credits under section 68 of the Act. On appeal, the CIT [A] confirmed the addition made by the assessing officer relating the agriculture income as income from other source and also sustained addition at 50% of the gifts shown by the assessee as unexplained cash credit under section 68 of the Act. Aggrieved further, the assessee is in appeal before us. 69. The learned counsel for the assessee submitted that the agriculture income was declared in the original return of income which is much before the date of search. No evidence found during the search. The agriculture income represents the sale proceeds of sugar cane received from M/s. Shiv Sakthi Sugar Industries. The sale proceeds were received in cheque. Hence, addition is not warranted. With regard to 50% disallowance of gift,....
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....f appeal raised by the assessee. 73. The next effective ground of appeal by the assessee relates to unexplained cash credit under section 68 of the Act amounting to Rs. 1,35,000/-. The assessing officer found that the assessee had shown receipt of gift worth Rs. 11,000/- and sale of shares of Rs. 1,24,000/- as per the Receipts and payments account. However, in spite of opportunity afforded, the assessee failed to furnish the particulars of loan, gift etc., as also evidence relating to sale of shares. The assessing officer, therefore, added the receipts of Rs. 1,35,000/- treating the same as unexplained cash credit under section 68 of the Act. On appeal, the CIT [A] confirmed the addition and hence, the assessee is in appeal before us. We find that long term capital gain on sale of the aforesaid shares were admitted at Rs. 1,24,000/- in the assessment year 2003-04, hence, no addition is warranted on this issue. With regard to the Gifts of Rs. 11,000/- received by the assessee, the amount being very small, by considering the facts of the case, we allow the ground of appeal by the assessee on this issue. In the result, the appeal filed by the assessee is allowed. Shri. C. Harish....
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....the ground of appeal raised by the assessee. In the result, appeal of the assessee is allowed. M/s. Lahari Infrastructure Ltd., Assessee's appeal in ITA No. 467/Hyd/2011 for the assessment year 2007-08 77. A search and seizure operation was carried out on 19-2-2008 at the business premises of the assessee company. Consequently, notice under section 153A of the Act was issued to the assessee company. In response to the same the assessee filed the return of income for the year under consideration admitting total income from short term capital gain of Rs. 9,02,231/-. During the course of assessment proceedings, the assessing officer found that as per seized material A/LIL/2 page No. 60, there is a cost difference in the purchase of land as per sale deed and sale agreements to the extent of Rs. 52,24,204/-. The assessing officer asked the assessee to explain as to why the difference should not be added to the total income. The assessee had not filed any explanation. Therefore, the difference was added to the total DCIT, Central Cir-6, Hyderabad. iincome while completing the assessment. On appeal, the CIT [A] enhanced the addition to Rs. 67,50,634/- as against addition made by ....
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....per conveyance deed is noted at column No, 16, which totals to Rs. 52,24,204/- for the land purchased between 17-8-2006 to 19-1-2007 as appearing in page No. 60 of the seized paper. However, the cost as submitted by the assessee in Annexure-II(a) is Rs. 3,28,85,037/- whereas the cost of land as shown in the seized document is Rs. 2,61,36,733/- leaving a difference of Rs. 67,48,304/-. Subsequently, the assessing officer after examination of various documents has reached a difference of Rs. 67,50,634/- which is almost same as the difference worked out earlier. The assessee has understated the cost of land to the tune of Rs. 67,50,634/- which is rightly added to the income by the CIT [A] instead of Rs. 52,24,204/- added in the assessment order. 80. We have considered the rival submission of the parties and perused the materials available on record. It is the contention of the learned counsel for the assessee that the total cost of the land which is the higher amount has been reflected in the land ledger account for the period 1st April 2006 to 31st March 2007, copy of which was filed. The assessee also claimed that the net cost of land as per the said ledger was already reflected i....
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....first common effective ground of appeal for both the assessment years relates to disallowance of expenditure claimed by the assessee on production of movie. It is contention of the department that the assessee was not able to file any details with regard to expenditure claimed in the profit and loss account. Since the expenditure has been claimed by the assessee, the onus lies on the assessee to prove that the said expenditure is genuine and also incurred for the purpose of the business. It is contention of the learned counsel for the assessee that amount disallowed equals to 75% of expenditure on production on movie and work in progress. Books have been audited and no discrepancy between books and seized materials were found for the relevant assessment years. Hence, the entire expenditure is to be allowed. After considering the totality facts and circumstances of the case, in our considered view, ends of justice would be met if the disallowance is restricted to 10% of the expenditure claimed. In the result, the ground of appeal by the assessee is partly allowed. 83. The next common effective ground of appeal for both the assessment years relates to disallowance of liabilitie....
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....view, the difference is only due to the reconciliation difference and the same is reconciled subsequently before the date of search. In view of the same, the enhancement made by the first appellate authority is not justified. Accordingly, we delete the same. The ground of appeal by the assessee is allowed on this issue. These appeals by the assessee are partly allowed. M/s. Swapna Lahari Films P. Ltd.-ITA. No. 575/H/2011- A.Y. 2004-05 87. The assessee filed the return of income declaring loss of Rs. 72,491/-.In course of the assessment proceeding, the assessing officer called for the details of expenditure as claimed by the assessee in the profit and loss account. However, the assessee could not produce any books or vouchers in spite of sufficient time and opportunity granted by the assessing officer. Accordingly, the assessing officer disallowed the expenditure claimed. Similarly, the assessing officer also disallowed the creditors for expenses of Rs. 1,86,056/- shown in the balance sheet since the assessee could not file the details of creditors along with confirmation letters. The assessing officer also made an addition of Rs. 7,78,685/- being the credit entries in the ban....