TaxTMI 
TaxTMI 
2016 (2) TMI 1219
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....xplained investment in building construction the addition is on estimated 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 estimat....
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....ering the facts of the case. The addition is purely on estimate basis. (iv) That the order passed by the CIT(Appeal) dated 27.12.2012 is also illegal and wrong being not accepting the legal ground raised in 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 C....
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....the assessee for the assessment year 1996-1997 the Ld. AO has not considered the opening balances of the balance sheet as on 31st March 1995. This fact is also verifiable from the face of the balance sheet of the assessee for the financial year 1995- 1996, on which the AO has relied and made 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 t....
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....r addition will be made in this head because the source is already added in the hand of the assessee. Looking to the facts and circumstances of the case and evidence please delete the addition made by AO for Rs. 1,35,790/- on account of credit balance in balance sheet and Rs. 7,41,110/- on account of investment in building. Assessment year 1999-2000 The 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 materia....
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....o the fact and the circumstances of the case and the addition made by the AO in earlier years the same is prove the contradiction in the valuer report and the contention of the AO. The assessee has also having valuation report from the registered valuer duly registered under wealth tax act. The same is much below the amount estimated by the department valuer. We request you to please accept the valuation report of wealth tax approved valuer taken by the assessee 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 ....
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.... The AO has not taken the prior approval of the JCIT for issuing the notice u/s 148 of the Act. From the above and the facts of the case the action taken by the AO for reopening of the case is barred by limitation and bad in law liable to quash. 1996-1997 Please note that the assessee is not doing any business and only do the saree business in the name of his wife Smt Laxmikanta Goyal. To avail the loan from bank the consultant of the assessee has prepared balance sheet for the assessment year 1997-1998 and 1998-1999 and submitted 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 accoun....
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....e AO has relied on the balance sheet submitted in the bank along with project report and made additions of Income shown in profit and loss account, increased in credit balance of creditors and increased in investment in shares. AO has made addition of Rs. 1,70,000/- for Business Income The AO has made addition on account of estimating the business income of the assessee 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. 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 u....