TaxTMI 
TaxTMI 
2016 (2) TMI 1219
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....timated basis. (iv) That the ld. A.O. has erred in estimating the sales ofRs.21,45,689/- and net profit estimated Rs. 1,50,000/- without any basis. (v) That the order passed by the CIT(Appeal) dated 27.12.2012 is also illegal and wrong. (vi) That the whole of the addition of Rs. 16,70,184/- is illegal excessive and bad in law." 3. In ITA No. 62/Ind/2014 the assessee has taken the following grounds of appeal :- (i) From the facts and in the circumstances of the case, the assessment order passed by the A.O. dated 29.12.2006 is invalid, void ab initio and time barred and notice issued u/s 148/147 dated 27.05.2005 is illegal and wrong and bad in law. (ii) That the A.O. was wrong in making addition as unexplained cash credit of Rs. 1,35,790/- on the basis of projected balance sheet submitted to the bank. (iii) That the A.O. was also wrong in making addition of Rs. 7,41,110/- as unexplained investment in building construction the addition is on estimated basis. (iv) That the ld. A.O. has erred in estimating the sales of Rs. 35,21,456/- and net profit estimated Rs. 1,70,000/- without any basis. (v) That the order passed by the CIT(Appeal) dated 27.12.2012 is also illegal ....
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....n first appeal. 7. We have heard both the sides. In the case of Smt. Laxmikanta Goyal, the Ld. counsel for the assessee submitted the following written submissions before the Tribunal :- " The facts in brief are that the appellant is individual assessee. The assessee has desired to start business activity in form of hotel business and for that purposes she has applied for the bank loan. To avail bank loan the bank has required certain papers included the project report, Balance sheet and profit & loss account. The consultant of the assessee has prepared the same and submitted to the bank and thereafter avail the loan from the bank. The assessee has not filed its return of income, therefore the AO has reopen the case u/s 148 and frame the assessment of the assessee for the above referred assessment year u/s 144 of the Income Tax act. Thereafter the assessee is preferred an appeal before the CIT(A), Ujjain but due to non appearance the same is dismissed by the CIT(A), Ujjain. The assessee further filed an appeal before the ITAT, Indore Bench Indore and the bench has set aside the case and restore the matter to the CIT(A), Ujjain to consider the matter a fresh and also decide the l....
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....e the addition. If the same has been considered there is no unaccounted money in the hand of the assessee and the only issue is left for income earned for the year i.e. 1,45,687/-. The AO has estimated the same at Rs. 1,50,000/-. Further the AO has made addition on account of unexplained investment in building for Rs. 5,95,450/-. Sir, if the entire credit is already added in the income of the assessee than no further addition will be made in this head because the source is already added in the hand of the assessee. The assessee is also having creditors of Rs. 1,59,734/- for the same but the AO has added both the amount in the income earned by the assessee. Addition of Rs, 9,24,734/- on account of credit appearing in balance sheet in the name of family members including Husband of the assessee (Rs. 7,65,000/-) and sundry creditors of Rs. 1,59,734/-. Please also note that during the financial year 1995-1996 the assessee has not received any fresh loan from the parties mentioned in the balance sheet but the same has been received in earlier years. As allegation made by the AO that the said persons, which are family members, are not in a position to give advance to the assessee and....
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....he Ld assessing officer further passed order u/s 144 of the Act and made the additions as under: 01. Rs. 1,00,000/- The AO has made an addition of Rs. 1,00,000/- on the estimated sales of Rs. 20,00,000/- in-spite Of the facts that during the year under consideration the assessee is not doing any business. The AO has made guess work and assumed that if there is business in the last year there is business in the current year and estimated the sale in compare to last year and also estimate the income from such business. If there is no business the AO has bound to accept the same otherwise he brought out any cogent material on record to prove its contention that the assessee has doing business in particular year i.e. year under consideration. In this case the assessee has not brought any material on record to prove that the assessee has doing the business in the year under consideration. The estimation of the AO is only on suspicious not on the basis of material. 02. The Ld AO has further added a sum of Rs. 28,15,977/- in the income of the assessee on account of unexplained investment in building. The AO has relied upon the valuation report done by the departmental valuer and ass....
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.... for valuation purposes and delete the addition made by the AO for Rs. 28,15,977/- " 8. In the case of Dinesh Goyal, the Ld. counsel for the assessee has submitted the following written submissions before the Tribunal :- "Assessment Year 1996-1997 and 1997-1998 Appeal No.IT- 64-65/2014 Facts: - The facts in brief are that the appellant is individual assessee. The assessee has desired to start business activity in the name of his wife Smt Laxmikanta Goyal in form of hotel business and for that purposes she has applied for the bank loan. To avail bank loan the bank has required certain papers included the project report, Balance sheet and profit & loss account. The consultant of the assessee has prepared the same and submitted to the bank and thereafter avail the loan from the bank. The assessee has not filed its return of income, therefore the AO has reopen the case u/s 148 and frame the assessment of the assessee for the above referred assessment year u/s 144 of the Income Tax act. Thereafter the assessee is preferred an appeal before the CIT(A), Ujjain but due to non appearance the same is dismissed by the CIT(A), Ujjain. The assessee further filed an appeal before the ....
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....to the bank. The Ld AO has made the additions on the basis of said balance sheet. The AO has made an identical addition of Rs. 1,45,687/- made in the case of assessee's wife. Further the AO has made an addition of Rs. 2,50,000/- on account of advance given to his wife ( same addition of Rs. 2,50,000/- were made in his wife account). The AO has further added a sum of Rs. 2,40,200/- on account of unexplain investment in building, in-spite of the facts that the assessee is not having any building. What happen in this case that the council of the assessee has just prepared the Balance Sheet and profit and loss account of both the assessee i.e. Laxmikanta Goyal and Dinesh Goyal to avail the loan from bank. He just prepared the Balance sheet and profit and loss account of Smt. Laxmikanta Goyal for the assessment year 1996-1997 and 1997-1998 and the same Balance sheet and profit and loss account of Smt. Laxmikanta Goyal is converted in the case of Dinesh Goyal as prepared for the assessment year 1997-1998 and 1998-1999. Please see page 4 to 7 of the paper book in which page no. 4 is related to Smt. Laxmikanta Goyal and pertinent to financial year 1996-1997 i.e. assessment year 1997-19....
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....the name of the assessee please delete the same. AO has made addition of Rs. 1,35,790/- for cashcredit The AO has made addition on account of increase in sundry creditors on the basis of balance sheet and Profit & loss account submitted in bank. The base of the same is converted means balance sheet of the Laxmikanta Goyal is renamed in the assessee's name for different assessment year. Since there is no business in the name of the assessee please delete the same. Further the AO has made addition of Rs. 7,41,110/- on account of unexplained investment in building. Sir, The AO has made addition on account of increase in investment in building on the basis of balance sheet and Profit & loss account submitted in bank. The base of the same is converted means balance sheet of the Laxmikanta Goyal is renamed in the assessee's name for different assessment year. Since there is no building in the name of the assessee please delete the same. As mentioned here in above in this case that the council of the assessee has just prepared the Balance Sheet and profit and loss account of both the assessee i.e. Laxmikanta Goyal and Dinesh Goyal to avail the loan from bank. He just prepared the....