TaxTMI 
TaxTMI 
2018 (3) TMI 143
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....equire specific adjudication. Ground No.2 is related to the depreciation on estimated income. In this case, the assessment was completed u/s 143(3) r.w.s. 147 of the Income Tax Act, 1961 (hereinafter called as 'the Act') by an order dated 29.11.2011 on total income of Rs. 41,35,830/-. During the assessment proceedings, the A.O. rejected the books of accounts and estimated the income @ 8% on gross contract receipts. The Ld. CIT taken up the case for revision u/s 263 of the Act and set aside the order of the A.O. dated 29.11.2011. Subsequently, the A.O. completed the assessment consequent to the order passed u/s 263 of the Act. In the reassessment made u/s 143(3) r.w.s. 263 of the Act, the A.O. estimated the income of Rs. 91,11,388....
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....and hence, requested to set aside the order of the Ld. CIT(A). 4. On the other hand, the Ld. A.R. submitted that the as per the last para of the Ld. CIT's order u/s 263, though the Ld.CIT directed the A.O. to add the depreciation, it follows with further directions of the CIT to determine the total income in accordance with law and established procedure and after affording a reasonable opportunity of being heard to the assessee. The Ld. A.R. submitted that though the Ld.CIT directed the A.O. to make the addition of Rs. 31,67,480/-, and gave further instruction to redetermine the income in accordance with law and as per established procedure and it is a clear indication that the issue has been set aside to the file of the A.O. to reconsid....
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....hed procedure and after affording a reasonable opportunity of being heard to the assessee." 6. Plain reading of the CIT(A)'s order indicates that the AO should consider the issue as per law and decide the issue after giving reasonable opportunity to the assessee and to re-determine the income in accordance with law and established procedure. Since the Ld. CIT's direction in 263 order is clear to afford the reasonable opportunity and to re-determine the total income, we are of the considered opinion that the A.O. was given free hand to re-do the assessment as per law after giving opportunity to the assessee. Combined reading of the specific mandate followed by the general instructions shows that the Ld. CIT intended to remit the matter ba....
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....ined was since the assessee had not furnished the funds flow statement and source. The A.O. also held that the loans appear to be squared up and sourced from unaccounted funds. The A.O. further held that the assessee failed to establish identity, creditworthiness and genuineness of the transactions, hence held that the loans are from unexplained sources, accordingly, added back to the income. 9. Aggrieved by the order of the A.O., the assessee went on appeal before the CIT(A) and the Ld. CIT(A) after thorough verification of the complete details accepted that the loans are genuine and deleted the addition. 10. Aggrieved by the order of the CIT(A), the revenue is in appeal before this Tribunal. 11. During the appeal hearing, the Ld.....
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....vant Asst. Year. A sum of Rs. 5,84,615/- and Rs. 6,13,267/- were shown as outstanding receivable in the asset side of balance sheet as on 31.03.2009 in the respective balance sheet of Mr.G.Ajay Kumar and Mr.Sudheer Kumar (loan creditors). Further, payment of Rs. 4 lakh each to appellant firm is through banking channel by way of cheques (No.390714 of Andhra Bank, Ring Road, Vijayawada, in the case of Mr.G.Ajay Kumar and No.422371 of Andhra Bank, Ring Road, Vijayawada in the case of Mr.G.Sudheer Kumar). Their bank account copies confirmed adequate bank balance availability on the date of advance, i.e. on 18.10.2008 (in both cases). Sri G.Sudheer Kumar paid another sum of R.75,000!-by cheque No.436165 to appel[a4in on 01 .09.2008 which is also....