TaxTMI 
TaxTMI 
2016 (7) TMI 612
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....etc. During the course of hearing the assessee submitted Tax Audit Report in Form No. 3CB & 3CD dtd. 15.09.2009 in respect of M/s. Ramsons Traders along with its annexures and other papers/ documents/ information as requisitioned. On perusal of the Balance Sheet of M/s. Ramson Traders it was observed that fresh capital to the tune of Rs. 5,86,305/- was introduced during the year under consideration. Accordingly the assessee was asked to explain the source of fresh capital. The ld. AO not convinced with the reply given by the assessee made an addition of Rs. 5,86,305/- towards fresh capital introduced from undisclosed sources. 2.2. The ld. CIT(A) observed that the ld.AO has made exhaustive computation and claimed that there is no surplus fund available with the assessee to explain the accretion to his capital account. He observed that the assessee had not pointed out any specific error in the reconstructed capital account prepared by the ld. AO. He further observed that the assessee did not submit any proof of filing a combined personal and business fund flow statement containing all the transactions and accordingly upheld the addition made by the ld. AO. Aggrieved the assessee is ....
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....ounted for in the next financial year. Moreover, for the balance amount of Rs. 38,493/- no bill was raised because the company has disputed it and the company has not paid these bills till date." 3.2. The ld. AO observed that the explanation of the assessee was not tenable at all because of the following facts :- (i) M/s. Haier Appliances paid the amount to the assessee after deducting necessary taxes under section 194C of the I.T. Act, thus the question of reimbursement of payment did not arise. (il) Clause 11 (a) of Form No.3CB in the Tax Audit Report it was clearly mentioned that the method of accounting employed by the assessee was "Mercantile System". (iii) The assessee failed to explain as to how M/s. Haier Appliances Pvt. Ltd. credited the payment to the account of the assessee in respect of services charges before March 2009 the bills of which as claimed by the assessee were raised & settled after March 2009. 3.3. Based on the above the ld. AO made an addition of Rs. 1,42,145/- in the assessment which was upheld by the ld. CIT(A). Aggrieved the assessee is in appeal before us on the following ground :- "2) That on the fact & circumstances of the case Id. CIT (A....
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....ustomers as a part of its business promotional scheme. For arranging that Sunderbans trip, the assessee paid an amount of Rs. 1,10,719/- to M/s. Make My Trip (India) Pvt. Ltd. A copy of Invoice dated 03.03.2009 issued by M/s. Make My Trip (India) Pvt. Ltd was also produced in support of its claim. On going through the narration of the invoice dtd. 03.03.2009, it was observed that M/s. Make My Trip (India) Pvt. Ltd had raised the bill in favour of M/s. Ramson Traders for arranging a package tour cost for 30 persons at Sunderbans Tiger View point from 25.02.2009 to 27.02.2009. It was further observed that before conducting the said package tour M/s. Make My Trip (India) Pvt. Ltd had received an advance of Rs. 80,000/- from M/s. Ramson Traders and raised the invoice for rest of the bill amount Rs. 30,719/-. On perusal of the bank statement, it was observed that M/s.Ramson Traders had paid the balance amount of Rs. 30,719/-vide cheque no. 171765 which was cleared from his bank account on 17.03.2009. Considering the narration of the invoice as well as the submission of the assessee it was concluded that M/s. Ramson Traders had entered into a contract with M/s. Make My ....
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....es out of that two at Gurunanak Complex, G. T. Road, Asansol and another one at Hill view park, Asansol. Out of three properties two is being used for residential purpose and one for business purpose. No house property has ever been let out so there does not arise any question of rental income." The Axis Bank authority , from which the assessee had taken house building loan bearing loan a/c. no. PH 2130100097590 , also confirmed that the housing loan had been granted for Flat No. 1, First floor, Gurunanak Complex, Asansol having covered area of 2335 sqft. Further from the various records of the assessee viz bank record, information from purchase deed of properties at G'urunanak Complex etc., it was observed that the assessee declared the house property at Hill Park, Asansol as his residential address. In view of the above it was inferred that out of three house properties, two properties were used for self occupation and other for business use. As the assessee resides with his family at Hill View Park, Asansol, the said property is treated as self occupied and annual value of that property is taken as "Nil" and the Flat No.1, of. 1st floor, Gurunanak Complex, G....