TaxTMI 
TaxTMI 
2013 (4) TMI 918
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....belong to the assessee but to another firm? (B) Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in disallowing addition of Rs. 12,14,165/- under section 40A(3) of the IT. Act towards expenses as per the impounded diaries holding that it did not belong to the assessee but to another firm?" 2. Question [A] arises out of addition of Rs. 1.67 crores (rounded off) made by the Assessing Officer towards unaccounted cash receipts. Primary basis for such addition was the service statement of the representative of the respondent firm. Assessee carried such issue in appeal before CIT(Appeals). Before CIT(Appeals) the assessee took a firm stand that the statement was recorded under grea....
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..... 2008-09 and it should be shown to have been accounted in the books of account of F.Y.2007-08 relevant to A.Y. 2008-09. Hence A.O took a view that these entries are not explained & they are unaccounted in A.Y. 2008-09. A.O after allowing expenditure of Rs. 41,43,016/- out of total receipts of Rs. 2,08,51,000/-made the addition of difference of Rs. 1,67,07,984/-. During the appellate proceedings, various evidences were submitted. Primarily, same appeared new/additional evidence, hence same were sent to A.O for report. A.O. objected for admission of new/additional evidences. On rejoinder the appellant came out with plea that same are not new/additional evidence. Hence, A.O was again asked to examine the issue. The appellant further argued th....
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....f M/s. Suraj Builders. It is noticed that in the show-cause notice dated 21/12/2010 the sales deed mentioned by the AO were found to be belonging to M/s. Suraj Builders. On test check, the receipts shown in these diaries were found recorded either in cash book or bank book. The closing cash balance of cash book also tallies with cash balance shown in the audited Balance Sheet of current assessment year. It is also found that all transactions shown in these diaries have been duly recorded in the books of account of M/s. Suraj Builders. Further the copies of P &L account, balance sheet and assessment order of M/s. Suraj Builders, filed during appellate proceedings amply prove that all transactions of receipt and expenses are recorded in the b....
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....of separate firm of the same group M/s. Sun Builders and therefore, no addition can be made in the hands of the present assessee. We, therefore do not find any reason to interfere in the order of the CIT(A) as per which, the addition made by the AO on the basis of diaries was deleted." 4. Having heard learned counsel Mr. P.J. Desai and having perused the documents on record, we are of the opinion that the entire issue is based on appreciation of facts. It is true that before the Assessing Officer, the assessee did not take the stand that the entries pertain to Sun Builders and Sun Builders had in fact shown such amounts in their books of account. However, by producing additional evidence before CIT(Appeals), such contentions were establi....