TaxTMI 
TaxTMI 
2013 (1) TMI 965
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....as under:- (i) In the facts and the circumstances of the case, the Ld. Commissioner of Income Tax (A) has erred in restricted the addition of Rs. 22,78,823/- made on account of undisclosed bank account to Rs. 10,54,214/-. (ii) In the facts and the circumstances of the case the Ld. Commissioner of Income Tax (A) has erred in directing the Assessing Officer to consider the opening balance of Rs. 1,77,718/- in the financial year relevant to assessment year 2000-01. (iii) The appellant craves leave for reserving the right to amend, modify, alter, add or forego any ground(s) of appeal at any time before or during the hearing o this appeal. 3. The issues raised in the Assessee's appeal read as under:- 1) The learned Commissioner of....
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....ppeals) has further erred both in law and on facts in failing to appreciate that the learned Officer had never disputed the factum of business of sale and purchase of goods by the appellant to R.M. Electronics and addition had been made only on the basis that source of purchase made of Rs. 7,05,213/- in the instant year together with the opening balance outstanding in the books of account of R.M. Electronics had not been explained and thus, the finding of the learned Commissioner of Income Tax (Appeals) changing the entire complexion of the matter without providing any opportunity much less valid opportunity to the appellant are not only without jurisdiction but otherwise based on surmises, conjectures and suspicion and have been arrived in....
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....filed to support cash purchase made by the appellant from Thanchingi & Sons, Aizawal, Mizoram is not tenable on merits has given no basis in support of the above conclusion and has mechanically arrived at such a conclusion to support his preconceived and premeditated opinion and thus, the same is not warranted. 3) That the learned Commissioner of Income Tax (Appeals) has also erred both in law and on facts in holding that opening balance of Rs. 1,77,717/- from where undisclosed income begins is assessable in assessment year 2000-01 and further erred in directing the learned Officer to take appropriate action. The said finding is too wholly unsustainable and not in accordance with statutory provisions of law and hence, deserve to be quash....
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....ils in this regard:- Trading and P&L account of Alok Mangal for the period ending 31.3.2001 Purchase 7,05,260 Sales 8,20,530 Gross profit 1,15,270 8,20,530 8,20,530 Net profit 1,24,410 Gross profit 1,15,270 Saving bank interest 9,140 1,24,410 1,24,410 Balance sheet of Alok Mangal as on 31.3.2000 Liabilities Assets Alok Mangal Capital account 19,83,620 Bank account 1,77,717 Cash in hand 3,47,609 Sundry debtors 14,58,293 19,83,620 19,83,620 Balance sheet of Alok ....
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....of sales have been claimed. Assessee submitted before the Ld. Commissioner of Income Tax (A) that cash purchases were made by the assessee based in Sita Ram Bazar, Delhi and from Thanchingi and Sons, Aizwal, Mizoram to make the sales to M/s RM Electronics, Aizwal. Ld. Commissioner of Income Tax (A) did not accept the additional evidences. Further, Ld. Commissioner of Income Tax (A) further observed as under:- "In the absence of any satisfactory explanation from the appellant, the undisclosed income is computed by drawing undisclosed business account from the 'purchase' and 'sales' entries appearing in the undisclosed bank account. The undisclosed business account is as under:- Date Particulars Withdrawal Deposit 7/4/200....
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....on account of undisclosed bank account was to be restricted to Rs. 10,54,214/-. As regards opening balance of Rs. 1,77,718/- from where the undisclosed bank account begins, needs to be considered in the F.Y. relevant to A.Y. 2000-01, for which the Assessing Officer was directed to take appropriate action. 6. Against the above order the Revenue and Assessee are in cross appeals. 7. We have heard both the counsel and perused the records. As regards validity of proceedings u/s. 147 raised by the assessee in the grounds of appeal, ld. Counsel of the assessee submitted that he shall not be pressing this ground. Accordingly, this ground stands dismissed. 8. We find that assessee has failed to give cogent evidence regarding the purchase a....